Another Fine Mess You've Gotten Us Into
New employment and unemployment data came out today.
The good news: The Unemployment Rate dropped from 9.8% to 9.4%.
The bad news: The number of jobs created last month was slightly more than 100,000, not even enough to account for the increase in population. Also the number of people unemployed for six months or longer increased by more than 100,000.
A link to a bigger graph
If these numbers were reality (as opposed to statistical variance, always a possibility) the way you get such a contradiction is because large numbers of people left the labor force, either through retirement or going to school or giving up. (It is true that the number of jobs created statistics for the previous months were revised upwards a bit today, thereby making previous months' overall status less grim). But if the economy continues to generate about 100,000-200,000 new jobs a month unemployment will never be alleviated.
The question is, why does no one seem to care? One answer I've seen proposed is that those whose job it is to solve the problem are totally sheltered from the problem. Not only do they have jobs (by definition) but everyone they know has jobs (unemployment is only about 5% for college graduates). Only if 'the masses' were to get really angry and start threatening Congress with pitchforks might something be done. But those who might be that angry are too worried about their next meal and next rent or mortgage payment to think about buying a pitchfork.
Checkmate.
The good news: The Unemployment Rate dropped from 9.8% to 9.4%.
The bad news: The number of jobs created last month was slightly more than 100,000, not even enough to account for the increase in population. Also the number of people unemployed for six months or longer increased by more than 100,000.
A link to a bigger graph
If these numbers were reality (as opposed to statistical variance, always a possibility) the way you get such a contradiction is because large numbers of people left the labor force, either through retirement or going to school or giving up. (It is true that the number of jobs created statistics for the previous months were revised upwards a bit today, thereby making previous months' overall status less grim). But if the economy continues to generate about 100,000-200,000 new jobs a month unemployment will never be alleviated.
The question is, why does no one seem to care? One answer I've seen proposed is that those whose job it is to solve the problem are totally sheltered from the problem. Not only do they have jobs (by definition) but everyone they know has jobs (unemployment is only about 5% for college graduates). Only if 'the masses' were to get really angry and start threatening Congress with pitchforks might something be done. But those who might be that angry are too worried about their next meal and next rent or mortgage payment to think about buying a pitchfork.
Checkmate.