Friday, August 7, 2009

US Unemployment Falls to 9.4%?

Away from computer this morning, but a good jobs report today for the US. The unemployment rate is down (due largely to discouraged workers) and the rate of job losses slowed considerably and beat expectations by a good margin. This stongly suggests that the sitmulus plan is gaining some traction.

UPDATE: Remember when the same thing happened to Oregon's Unemployment rate? From March to April of this year the unemployment rate fell 0.1 percentage point. Lots of discouraged workers but it did not mean a reversal of the trend of increasing unemployment rates. As long as we are still shedding jobs we will see unemployment grow. It takes over 100,000 new jobs a month to keep up with the growing potential work force.

But as unemployment is probably going to be one of the last things to turn around, this, along with little bits of good news from other parts of the economy (credit markets, for example) is a reassuring sign that things are slowly turning around.


Ralph said...

Can I get a refresher course on how 247,000 jobs are lost and the UE% decreases?

Patrick Emerson said...

Good question. Unemployment is the number of people actively looking for work that can't find any. About 400,000 people dropped out of the labor force ( stopped looking for work) since this is greater than the job looses, U rate dropped.

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Padmanaban said...

That’s right. Unemployment is increasing day by day. Though there are job openings but still the case is very worse, since the companies are selective, and depending on the need, they take their time in finding the right candidate.
There should be some changes to be taken effect in the education system.