The high unemployment rate continues to have an adverse affect even on those who still have jobs.

The furloughs that popped up during the recession are being replaced by a highly unusual tactic: actual cuts in pay.

Local and state governments, as well as some companies, are squeezing their employees to work the same amount for less money in cost-saving measures that are often described as a last-ditch effort to avoid layoffs.

A new report on Tuesday showed a slight dip in overall wages and salaries in June, caused partly by employees working fewer hours.

Though average hourly pay is still higher than when the recession began, the new wage rollbacks feed worries that the economy has weakened and could even be at risk of deflation. That is when the prices of goods and assets fall and people withhold spending as they wait for prices to drop further, a familiar idea to those following the recent housing market.

When it comes to public jobs, many of these cuts may be justified, as we’ve seen many examples of inefficiencies in the public sector. In that sense some of these adjustments are good for the overall economy in the long run.

That said, many of these cuts are painful, and this won’t help get the economy moving in the short term.

We’ve been hearing anecdotal evidence that hiring has been picking up, and today’s job numbers confirm the trend with some good news on the jobs front.

Employment in the U.S. increased in March by the most in three years and the unemployment rate held at 9.7 percent as companies gained confidence the economic recovery will be sustained.

Payrolls rose by 162,000 last month, less than anticipated, figures from the Labor Department in Washington showed today. The March increase included 48,000 temporary workers hired by the government to conduct the 2010 census, as well as job gains in manufacturing and health services.

The government revised January and February payroll figures up by a combined 62,000, putting the March gain at 224,000 after including the updated data. Caterpillar Inc. is among companies adding staff, indicating the recovery that began in the second half of 2009 is starting to foster the jobs needed to lift consumer spending and sustain the expansion.

Let’s see if this can be sustained. Much of the stimulus money is still in the pipeline, so we can expect more hiring resulting from those federal dollars and they work their way through the economy. Also, manufacturing seems to be picking up, so that could also have a very positive effect.

BusinessWeek recently had an interesting article on the challenges facing young people in this economy. Many of them just can’t land jobs.

Bright, eager—and unwanted. While unemployment is ravaging just about every part of the global workforce, the most enduring harm is being done to young people who can’t grab onto the first rung of the career ladder.

Affected are a range of young people, from high school dropouts, to college grads, to newly minted lawyers and MBAs across the developed world from Britain to Japan. One indication: In the U.S., the unemployment rate for 16- to 24-year-olds has climbed to more than 18%, from 13% a year ago.

For people just starting their careers, the damage may be deep and long-lasting, potentially creating a kind of “lost generation.” Studies suggest that an extended period of youthful joblessness can significantly depress lifetime income as people get stuck in jobs that are beneath their capabilities, or come to be seen by employers as damaged goods.

Equally important, employers are likely to suffer from the scarring of a generation.

This danger of “scarring” seems real, but if you find yourself in this group you have to be proactive and NOT let this hurt you. That may sound easy, as options are now clearly limited. However, on the other hand, the dire condition of the economy can also be used to alter your perceptions of what you need at this time in your life. Many graduates expected to get a high-paying job immediately upon graduation, and now many of those job aren’t available. Yet is that what you really need RIGHT NOW?

In many cases the answer is no. Maybe you can now consider a cool internship that pays little but offers an incredible experience. Perhaps you can take a much-needed break and go on that backpacking trip that you dreamed of doing after college. This of course depends on your funds, though the cost of travel has plummeted.

Alternatively, you can be aggressive about doing something entrepreneurial or contracting out services online.

We know if sucks out there, but you have to make the best of the situation you’re facing. Get motivated, and good things will happen!

While the pace of job losses has declined dramatically, we haven’t turned the corner yet.

The job market remained in a deep funk in December, according to a government report Friday showing that employers view the economic recovery as too weak and too fragile to begin hiring again on any large scale.

The pace of layoffs has slowed sharply in recent months, but businesses still cut 85,000 net jobs in December, the Labor Department said. The unemployment rate was unchanged at 10 percent, but economists suspect this is only because hundreds of thousands of frustrated workers stopped looking for jobs.

The key is that the trend in is the right direction. The recovery is going to be a little choppy, but hopefully the trend continues in the right direction. If you’re unemployed, the key is to continue being persistent. Don’t give up!

We’re launching this career and jobs blog at a time when our nation is experiencing very difficult economic times. We may have averted a depression, but unemployment just hit a 26-year high of 9.7%. The economy appears to be turning, but job growth seems to be far off.

Hopefully, we can help some of you who are looking for work as we discuss career and job issues and tips. We’ll also provide information for people who want to plan their careers or possibly change careers, and for those of you who want to start a business or do a better job of managing your business or department.

This site will be about maximizing the enjoyment and rewards you get out of the career you choose, or the career or job you deem necessary under your current circumstances.

We always welcome feedback, so please let us know your thoughts.