The talk of Unemployment levels has been a huge topic of discussion for as long as we have been studying Economics. As of recent, in specific, April we saw a increase of 164,000 new jobs in the workplace. While we saw this increase, there was also a huge drop in the number of employed individuals to the tune of 239,000. Our nations current unemployment rate is currently at 3.9% which is a nation low since the year 2000. Looking at the data that has been presented you would think that our unemployment rate should have increased. the reason that it hasn't is because these individuals didn't get fired, they simply quit their job and left the workforce entirely leading to an decrease in the unemployment rate. There is now a ton of open jobs for anyone who is searching which may even cause the unemployment rate to decrease even more. My question that I have with all of this is why did all of these employees quit, and where did they go?
Zack, I have the same question as you. Why are people leaving their jobs in a competitive economic market where it is hard to find a job in the first place. Do you think it is a generational thing or does it have any other reasons?
ReplyDeleteI guess it could depend on a lot of things. For instance, what city were these new jobs in/what market. Same could go for the people who quit. Maybe their jobs were in a dying market and became distressed. It could also have something to do with them being unhappy at the job and just want to take some time off. However, if this were to continue in major cities and markets it could become a major problem.
ReplyDeleteThere's many factors to why there was a major drop in the number of employed individuals. It could either be the retirement rate for this year increased compared to prior years or possibly because they were relocated for a better position at a different company. I also saw on the news recently that many people are leaving major cities like New York city, Los Angeles, and Chicago at a very high rate each day. This could be another factor into why people are leaving the workforce.
ReplyDeleteI feel like one of the reasons for a drop of the number of people participating in the workforce could be because the baby boomers, which is a big part of the labor force, are beginning to retire.
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