This is just the result of a recession. Its not official because the definition of a recession is a downward trend for two or more quarters, which hasn't happened quite yet iirc.

When the economy goes into recession employment goes down, but so does the cost of living because with more people out of work less people are willing to pay for a product at a higher price. Thus the cost deflates. The price deflates and people buy more, the company makes more, the company profits and can support more workers.

Its kind of a little trick the free market uses to regenerate. The idiots like Oboma who claim they can keeps us from going into a recession through taxation and distributions (stimulus packages), and bailing out the banks and other pet industries, is inducing stagflation. Which is where both unemployment goes up and inflation (i.e. the cost of living) go up.

In effect it STALLS the business cycle, its like interrupting the heartbeat of our economy.

What the economy needs is to be left alone for a few years, with small tax cuts and a reduction in distributions (socialist systems)

When less work is demanded the standards for which employers choose their workers by is much higher, its all a matter of supply and demand.