Good luck finding a job, even at Mcdonalds!

The unemployment rate recently skyrocketed from 4.8% in April of 2008(normal), to 9.5% in September 2009. When it is that high, the college graduates who spent thousands of dollars on their education resort to entry level positions and labor intensive jobs. The high unemployment rate makes budgets tight, lowers the spending of consumers, and can result in the bankruptcy of businesses which leads to more unemployment. Inflation can also occur, called stagnation, where people earn less in comparison to what they are making. The business cycle that includes the unemployment rate and inflation is constantly going up and down, which is bright news for the US in 2009, since things can't get much worse.


http://www.robrogers.com/cartoons/2003/images/052203%20Unemployment.gif