The July unemployment rate, which was just released, makes absolutely no sense. I am not an economics major, however I do understand the main principles of addition and subtraction, and percentages. According to the recent economic report, America lost another 250,000 jobs in the month of July, 550,000 more Americans applied for unemployment benefits (according to a report yesterday), if Americans lost 250,000 more jobs, and very few jobs were created (I believe the minus 250,000 is a process of addition of new jobs, to lost jobs), how come the unemployment rate has gone down? When more jobs have been lost, it only makes logical sense for the unemployment rate to go up, when more people are unemployed then the month before.
That is just me.
Also, I am sure some little liberal worms will attempt to spin this as "look, Obama's stimulus plan is working", no it is not. According to the economic report (which I personally do not trust), the construction industry cut another 75,000+ more jobs, in line with the past three months of construction jobs cuts. So why is the unemployment numbers going down?
It is, because hundreds of thousands of Americans have given up looking for jobs, that should be the larger headline, also...the unemployment rate should be based on those that are unemployed, period. The decline in the unemployed rating is a smoke screen, hundreds of thousands of Americans lost more jobs, and the same amount are giving up looking for a job.
What should we expect?
During the fall & winter, we should expect massive layoffs in industry across the board, as the winter is usually the time for slow business, added with this dreadful economy, that results in massive layoffs.
Remember to bookmark our site!
Consider advertising on our site!