The Bureau of Labor Statistics released employment statistics this past Friday. The statistics released by the BLS have shown that the unemployment rate rose from 4.3% to 4.4%. While this may be a rise in unemployment many economists are not worried, Joe Brusuelas chief economist at RSM said: "This report is all noise and no signal." Jed Kolko the chief economist at Indeed.com said: “We’re actually at a point of unusual stability.” There are however some who are concerned about the next few months of unemployment. Carl Tannenbaum the chief economist at Northern Trust said that "The next one or two months are going to be colored by the impact of Hurricane Harvey." While this concern may only be a brief shock to the economy but the full effects are not yet known and as such may be more long lasting than they may be presently perceived to be. This is because the survey used to determine these numbers was conducted before the Hurricane.
https://www.washingtonpost.com/news/wonk/wp/2017/09/01/government-to-release-august-job-growth-and-unemployment-report/?utm_term=.6b50105a0cf6
http://www.businessinsider.com/us-jobs-report-nonfarm-payrolls-august-2017-9
https://www.cnbc.com/2017/09/01/nonfarm-payrolls-august-2017.html
I would agree with the first couple economists that you quoted, the rise from 4.3% to 4.4% is irrelevant and shows nothing. Again, as you stated, Hurricane Harvey will most definitely impact unemployment, and we are in for a long haul of recovery. In the long run, educated people should be able to re-enter into the workforce, if they relocate or choose a different route. The real unemployment issue in the long run, are those who choose to stay in the devastated areas. They will be unable to find work, besides in construction, for a long time. I am at agreement that Harvey will immediately affect unemployment come the first Friday of October.
ReplyDeleteI agree, that the unemployment rate rising from 4.3% to 4.4% is nothing that should worry anyone. However, Hurricane Harvey will probably impact unemployment in the next couple of months, and maybe even the next couple of years. All of the people from that area that have been forced to leave the area will also be forced to leave their jobs most likely. Therefore, most of these people will become unemployed. Eventually, these people will be able to find other jobs.
ReplyDeleteAlthough I do not think that the unemployment rising from 4.3% to 4.4% is nothing to worry about. I think it is a good idea to take into account other things that could be causing this such as Hurricane Harvey, which has left millions of people that make up a good percentage of the economy in Texas and in the world out of work which could turn to hurt the US economy as a whole.
ReplyDeleteA .1% increase is not much, however, the country can still improve on 4.4%. Trump has openly said that the unemployment rate will be the best measuring stick for his presidency. Obviously, the upcoming hurricane Irma will create even more jobs (many created through Harvey). Rebuilding the numerous homes will be a challenge, however we should have support from all over. I believe the unemployment rate will improve after these catastrophes. Although many people are going to be devastated, they will be able to find jobs that are readily in need of workers. Our country has given great support to the south during these times, and I believe this will be a turning point for unemployment and our country as a whole.
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