Unemployment reaches double digits

By AP Economics Writers CHRISTOPHER S. RUGABER, AP Economics Writers JEANNINE AVERSA (The Associated Press)

WASHINGTON (AP) – Just when it was beginning to look a little better, the economy relapsed Friday with a return to double-digit unemployment for only the second time since World War II and warnings that next year will be worse than previously thought.

The jobless rate rocketed to 10.2 percent in October, the highest since early 1983, dealing a psychological blow to Americans as they prepare holiday shopping lists. It was another worse-than-expected report casting a shadow over the struggling recovery.

President Obama called it “a sobering number that underscores the economic challenges that lie ahead.” He signed a measure to extend unemployment benefits and to expand a tax credit for homebuyers.

Economists had not expected the 10 percent mark to come so quickly and immediately darkened their forecasts.

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