http://www.aljazeera.com/news/americas/2013/04/20134514471878168.html
The article talks about how there was fewer jobs added to the labor market in the past month of March. Only 88,000 jobs were added to the job market which was far less than analysts had expected. They expected there to be about 200,000 jobs created in the month of March. This is considered the lowest level of job creation since June 2012. Even though there was far fewer jobs added to the labor market than analysts' expectations, the unemployment rate decreased from 7.7% to 7.6% due to people dropping out of the workforce. Despite the lack of meeting the planned expectations, one market does continue to improve which is the housing market. The housing market continues to create more jobs in the construction sector. It will be interesting to see how the budget cuts affect the labor market in the future.
It's unfortunate that the slight decrease in the unemployment rate is actually some what deceptive due to the decrease from people leaving the job force rather than people actually finding jobs. However I do believe that due to the large growth in the housing and construction sector that employment will indeed decrease in the long run as well as the short run.
ReplyDeleteThe unemployment rate is still too high for comfort but unemployment usually lags in going back to its original state after a recession. There are signs that the US economy is recovering and going back to its natural state, it's not as fast as we want it to be but it is surely going in the right direction. There is no argument that we still have a long way to go however and I don't believe performance in one month is reflective of the economy's performance and recovery as a whole since the financial collapse of 2008.
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