Job market shifting as recession sets in

WASHINGTON, Nov. 24 (UPI) -- Economists are predicting a rise in U.S. unemployment and a "structural" shift in the job market, resulting in longer periods looking for work.

Many economists predict the recession will push unemployment from 6.5 percent to 8 percent, Time magazine reported. But, economic conditions are also changing, said economist Thomas Lam of United Overseas Bank.

"This doesn't seem like a simple cyclical shift," he said. "What we are seeing is a structural problem in the U.S. economy."

Under present conditions, unemployed workers have a 22 percent chance of finding a job within a month, Lam told Time, but, he added that it could take longer to find work, as the financial sector shrinks and other sectors are left wanting.

In 2009, 2.3 million U.S. workers could lose their jobs, a figure potentially offset by President-elect Barack Obama's promise to create 2 million jobs by 2011, Time reported.

The trend suggests workers need to shift from financial jobs and technology jobs to healthcare opportunities, Time reported.

"Clearly you are going to have people moving down the pay scale," said Dean Baker, co-director of the Center for Economic and Policy Research.

Baker also predicted "an increase in manufacturing," Time reported.