The U.S. unemployment rate zoomed to an unexpected 10.2 percent in October, piercing the double-digit barrier for the first time in 26 years as employers continued to slash payrolls even as the nation’s economy continues to improve.
The uptick in joblessness comes just after the U.S. economy delivered better-than-expected growth in the third quarter. On Oct. 29, the U.S. Commerce Department said that gross domestic product (GDP) grew 3.5 percent during that three-month stretch. That was slightly better than the 3.2 percent that economists were expecting.
During that same period of time commercial bankruptcies among the nation’s more than 25 million small businesses increased by 44 percent from the third quarter of 2008 to the third quarter of 2009, according to Equifax Inc., which analyzes its comprehensive small business database for the on-going study.
While unemployment and commercial bankruptcy rates are up so is the U.S. productivity rate, or output per hours worked. In fact, it surged in the third quarter to hit its highest level in six years. A rise in productivity is ultimately good for companies, workers and the economy, but could be a driver in what many are calling a jobless recovery.
