http://www.reuters.com/article/2014/04/10/us-usa-economy-idUSBREA390UQ20140410
The unemployment level measured in April 4th, 2014, is as high as May 2007, which was the lowest amount in the past seven years. State unemployment benefits declined 32000 to a seasonally adjusted 300000. Assumption of the reasons are such as severe weather and stocks that were from the second half of 2013 were accumulated but not sold as much, thus making businesses order less from manufacturers. Moreover the growth slowed down as well, since long term unemployment benefits got expired. The number of people receiving unemployment benefits reduced, starting from 2008.
Job growth was an average of 195000 per month but unemployment was around 6.7 percent, nearly a five-year low rate. However inflation pressures seem to have no effect on unemployment. The price increase was barely 1 percent.
The unemployment level measured in April 4th, 2014, is as high as May 2007, which was the lowest amount in the past seven years. State unemployment benefits declined 32000 to a seasonally adjusted 300000. Assumption of the reasons are such as severe weather and stocks that were from the second half of 2013 were accumulated but not sold as much, thus making businesses order less from manufacturers. Moreover the growth slowed down as well, since long term unemployment benefits got expired. The number of people receiving unemployment benefits reduced, starting from 2008.
Job growth was an average of 195000 per month but unemployment was around 6.7 percent, nearly a five-year low rate. However inflation pressures seem to have no effect on unemployment. The price increase was barely 1 percent.
This is definitely an issue that needs to be handled. Things like severe weather may contribute to unemployment increases, but it definitely does not increase it as much as it has. It's strange that the inflation rate has no effect on unemployment as of now. This makes me think that there is something else other than stocks and severe weather affecting the unemployment rate.
ReplyDeleteThis is a very good sign that unemployment is decreasing. I believe the action the government has taken to lower unemployment benefit is partially helped in this. People have more incentives to find jobs therefore reducing the unemployment.
ReplyDeleteI think it is very interesting to see the harsh winter had a large impact on the economy:
ReplyDelete"The return of warmer temperatures has brought with it better data. There are a number of signs that progress in the jobs market could be accelerating, a positive sign for the broad economy as well," said Jim Baird, chief investment officer at Plante Moran Financial Advisors in Kalamazoo, Michigan.
It is great to see we are having accelerated growth...but it seems like we need to look at other factors than just weather.
Is this because of the people dropping out of trying to find a job because of the challenges of that or people actually being hired and more jobs coming along?
ReplyDelete