The Bureau of Economic Analysis said the unemployment rate increased to 9.9 percent, nearing double-digit figures not seen since December 2009. The increase comes after three months of the jobless rate sitting at 9.7 percent.
Rising unemployment was seen even though the number of jobs available climbed 290,000 during the month. However, more people may have returned to the job hunt, as the government does not count those not looking for work as being unemployed.
Of the 15.3 million people out of work, 6.7 million have been without a job for 27 weeks or more. This marks an increase over prior reporting periods, according to the BEA.
While unemployment increased, Labor Secretary Linda Solis said the government’s efforts have helped create jobs and put more people back to work. She also said Congress needs to act to extend unemployment insurance through 2011′s end.
“We continue to push for programs to help unemployed workers make it through this difficult time,” Solis said. “Extending expiring unemployment benefits and health coverage is vital.”
Citing the Council of Economic Advisors’ evidence, Solis also said that the American Recovery and Reinvestment Act helped create or retain between 2.2 million and 2.8 million jobs through this year’s first quarter. She said that there are also indications that the ARRA continues to increase employment in the country.
Although the unemployment rate increased, the nation’s gross domestic product has posted steady gains through the last three quarters, meaning consumers are pouring more money back into the economy. As a result, business may be more inclined to hire or keep workers, thereby staving off future increases in joblessness.
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