This article talks about the small decrease in the level of unemployment from 9.1% to 9%. This decrease has come about because of a slight increase of 80,000 jobs during the month of October. The article then speaks of the generally feeling of "it could have been worse" with respect to the change in unemployment. This comes up because of the prediction the Obama administration had made in 2009, declaring that the $787 billion stimulus package would help to cut unemployment to 6% by this year. Because of this great difference in goal and reality, Obama's chances of re-election may be considerably less.
The increase in jobs this year was barely enough to cover the loss in jobs that have occurred during the same time period. With this slight change in the unemployment level and the effects of the European financial crisis on the global economy the chances of financial stability being achieved anytime soon seems rather slim.
In Labor Economics, we looked at October's unemployment rates compared to June's rates. It is interesting to point out that the largest decreases in unemployment from June to October has been black teens (-2.1%)and black females (1.2%) Every other group of people surveyed either stayed the same, or went down.
ReplyDeleteIm surprise to see that with 80,000 number of job increases the unemployment rate only drop by 0.1%. To be able to drop the rate to 6% a lot more jobs need to be created. And yes Obama will have a tough time getting reelected since 6% is a reach.
ReplyDeleteI think that the Obama administration didn't foresee some of the problems we have continued to have as a country. The 787 billion dollars probably would have decreased unemployment by 6% if everything went according to plan. However some things that happened weren't foreseen by anyone so, you can't blame Obama for being optimistic. However most people don't think like this they just think what mass media tells them. Obama isn't all to blame it's banks for not lending and business for having their "animal spirits".
ReplyDeleteCongress is still stubborn about passing any type of Jobs bill that Obama has proposed. The Republican plan basically does away with many federal regulations, including environmental regulations that keep the country clean and safe. If some type of jobs act were passed that brought the unemployment rate below 9% then a major psychological would be broken, since the unemployment rate has been above or at 9% for months now. People need a boost, emotionally and economically, and Congress has the ability to provide that. Congress is doing a horrible job of providing for the American people right now.
ReplyDeleteEven 0.1% isn't too much, at least the unemployment rate is decreasing. It is true that the stimulus package has't been as effective as it should. But I don't think this will be the diffcult of Obama's relection. There are much more to blame.
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