Employment numbers continue to illustrate economic challenges

The economy took another blow on Friday as the December jobs report was released showing a significant increase with unemployed workers. The stock market took the news in stride and has only posted moderate losses as fears of a much larger loss of jobs was anticipated. There is speculation that the large loss in jobs will add motivation for the government to aggressively ramp up their proposed stimulus program a moved aimed at providing relief for both individuals and companies to get back on track.

Economists universally agree that fixing the economy will centered on two major components, restoring job growth and fixing the housing market. There is speculation that the market could continue to see job losses mount well into 2009. The challenges with the economy are likely to take many months to begin correcting. The chairman of the Boston Fed reserve indicated in a speech on Thursday that there is growing beliew that the recession will now be larger and longer than originally anticipated, but the moves made by the FOMC late in 2008, increased funds for banks to begin lending and the hope of a large economic stimulus program in 2009 should begin to take positive effect on changing the economies course.