http://www.nytimes.com/2013/03/15/business/economy/jobless-claims-continue-decline.html?ref=economy&_r=0
The amount of unemployment claims have been steadily
decreasing the past few weeks, and now are at a 5-year low. This drop in
unemployment claims has been seen in both the state and national levels. The
amount of the U.S population submitting these claims is much better than many
economist expected. This is very good news as it seems job growth is still
occurring even with the tightening fiscal policy.
This
reduction in unemployment most likely has a large part to do with the Fed
buying mortgage-back securities, with the idea of stimulating the labor market.
By doing this the Fed is creating inflation in the economy, which may help our
recovery but will hurt in the long run if they continue with this policy.
In recent years, the U.S. government has been very efficient in creating jobs for the recovering economy. There has been steady progress, with little slip-ups which will hopefully lead us back to the natural rate of unemployment.
ReplyDeleteThough it is recovering, job growth has been modest compared to recoveries in the past, and unemployment is still hovering just below that 8% mark we have seen since September.
ReplyDeleteThough it is recovering, job growth has been modest compared to recoveries in the past, and unemployment is still hovering just below that 8% mark we have seen since September.
ReplyDeleteI think that the Fed's main goal is to keep interest rates as low as possible. Inflation has not been stable since the buy-back program started and Fed is predicting that inflation will not rise. I o not think that Fed actually attempts to create inflation. On the other hand job market has been showing encouraging signs and reached its lowest unemployment level in last four years. Lower unemployment rate might have been partially cause by people dropping out of labor force but the fact that unemployment claim have been decreasing over the past few weeks suggests higher employment rate.
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