http://www.nytimes.com/2013/02/02/business/economy/us-adds-157000-jobs-unemployment-rate-edges-up-to-7-9.html?pagewanted=1&_r=1&hp
This article offers an interesting analysis of the current unemployment situation in the United States. Despite the uncertainty in the economy due to the situation in Washington, jobs grew by 157,000 and the stock market improved. However, despite this, the unemployment rose to 7.9%.
It appears as though job growth has been barely fast enough to keep up with the rate at which workers are added to the labor force. In addition, labor force participation rates are at a 30-year low. Based on this, it should be relatively easier to bring down the unemployment rate. This is an indicator that the recovery is perhaps not as fast as can be hoped. However, on the bright side, the number of jobs has been growing steadily - faster than expected, in fact and the stock market has been doing well.
This article offers an interesting analysis of the current unemployment situation in the United States. Despite the uncertainty in the economy due to the situation in Washington, jobs grew by 157,000 and the stock market improved. However, despite this, the unemployment rose to 7.9%.
It appears as though job growth has been barely fast enough to keep up with the rate at which workers are added to the labor force. In addition, labor force participation rates are at a 30-year low. Based on this, it should be relatively easier to bring down the unemployment rate. This is an indicator that the recovery is perhaps not as fast as can be hoped. However, on the bright side, the number of jobs has been growing steadily - faster than expected, in fact and the stock market has been doing well.
An interesting analysis of why the unemployment rate rises while jobs have been growing steadily. As the number of jobs increases, people have been getting back into the labor force at an even faster rate and that explains the unexpected rise in the unemployment rate. Anyway, we are still in the beginning phase of recovery so we can't really say much at the moment. But as you said, looking on the bright side, we are on the right track.
ReplyDeleteI agree this is great improvement that our employment rate raising this showed that companies are now hiring again. Everything is going well “the economy, sales, employment and the stock market are all higher in spite of the bickering and rancor in Washington,” said Bernard Baumohl. Those that quit looking for a job are now back searching for one because they were encouraged by those that were getting hired. Despite the improvement in our economy since people are back looking for jobs this increased our unemployment rate.
ReplyDeleteWith such a low labor force participation rate, the unemployment rate of 7.9% is a little inaccurate. SO many people have just dropped out of the labor force and stopped looking for a job. And with so many people running out of unemployment benefits, many people are having a hard time trying to stay on their feet economically.
ReplyDeletehttp://www.conference-board.org/data/consumerconfidence.cfm
Also, with everybody having a hard time consumer confidence is dropping. The index is at 58.6 which has dropped from last month, more consumers are becoming more pessimistic about their financial situations. So it seems as though economic recovery and growth in the job market is still moving sluggishly. If the government was able to come up with some solid and permanent fiscal policies to address the recent concerns of the debt ceiling and the fiscal cliff, market confidence might rise and we could see more investment in business.