Economists are warning that unemployment in the US could reach seven per cent before labor market conditions begin to improve.

According to financial analysts from several firms, weaker economic growth in the third and fourth quarters of the year could prompt further jobs losses.

And some warn that unless the government takes action to tackle the financial crisis, the jobless rate could rise even higher than seven per cent.

Joel Naroff from the consulting firm Naroff Economic Advisors told USA Today that without a bailout from the White House, unemployment may even top 8.5 per cent.

Meanwhile, Joel Prakken, the chairman of Macroeconomic Advisers, told Reuters that he expects difficult labor market conditions to persist for another nine or ten months.

Such news is unlikely to appease families already struggling to manage their debt and cope with the rising cost of living.

A recent poll conducted by Harris Interactive revealed that one in ten employers plan to make job cuts in the fourth quarter, USA Today reported.

-----------------------------------------------------------------------