In September employers added 248,000 jobs. Unemployment fell to 5.9% while the labor force was virtually unchanged. This is very good news since a lot of the drops in unemployment during this recession have been due to people dropping out of the labor force. I also expect this kind of growth to happen in October and December in preparation for the Christmas season. Unless there is some other underlying issue, it seems like the economy is improving steadily. I wonder how long this growth will continue, and I wonder if wages will suffer from the growth of workers. Maybe the increase in workers would leave firms less money to raise wages. Sort of the opposite effect of minimum wage increasing and firms not being able to hire as many workers.
http://money.cnn.com/2014/10/03/news/economy/september-jobs-report-unemployment-below-6-percent/index.html?iid=SF_E_River
It's good to see things are slowly improving. It's even better that the unemployment rate is improving without the labor force being unchanged. Like you said, it usually drops because people are dropping out of the labor force.
ReplyDeleteIts always a positive sign seeing the unemployment rate decrease. I agree with Zahki that it is even better that this improvement is being made without the labor force changing as well.
ReplyDeleteThe unemployment rate going down will be very beneficial for us as college students if it continues to drop and is lower when we graduate. When we are looking for jobs it will be beneficial to have a lower unemployment and it is good to see unemployment going in the right direction towards the natural level.
ReplyDeleteEven though the significant decrease in unemployment rate has something to do with the people leaving the workforce because of their ages, the fact that employers are adding more and more jobs in the economy makes me feel very optimistic about my career after college.
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