07-09-2007
US in danger of recession
A fall in US employment levels is sparking fresh fears of a recession, it has emerged.
According to reports, for the first time in four years the number of employed workers fell in the US, bringing the national level of unemployment to 4.6 per cent.
"I think the probability of recession is higher than it used to be," said William Poole, president of the St Louis Federal Reserve.
"Recent developments have revealed serious imperfections in the functioning of US housing markets and, more broadly, in credit markets worldwide," added Jean-Philippe Cotis, chief economist for the OECD.
Over the course of June and July, the US created 81,000 fewer vacancies than was expected, according to the country's labour department.
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