The U.S. joblessness pace went up again between July and August. It went from about 9.5 percent to 9.6 percent now. Of course, there were nevertheless more people hire than were expected. The uptick in unemployment statistics has been credited to the conclusion of temporary U.S. Census careers, layoffs in state and local governments and an influx of individuals returning to their employment hunts. Hiring in the private sector has gone up for the eight month in a row. There was also a change in June and July figures revised by the Labor Department showing less careers were lost and additional created. The positive aspects of the latest careers report are giving economists hope that the economy won’t relapse into a double-dip recession.
Too many unemployed workers for job creation
The Labor Department explained that Friday’s August jobs report showed the first raise in the U.S. joblessness rate in four months. MSNBC reports that although private employers added 67,000 jobs, the United States of America unemployment pace is skewed by the loss of 114,000 census careers and 10,000 employment cuts in state and local governments. 500,000 individuals decided it was time to start looking for work once again. Since April, this has pushed the unemployment pace to go up again. Revised job creation is occurring also. This greatly helps the employment outlook for many. At first, private sector employment growth was 71,000 in July, although it was changed to 107,000. June job creation was revised upward to 61,000 from 31,000.
Hard to fix labor market
There has been a really large problem with the U.S. unemployment rate for a when. It is hard to fix. The labor market is doing better than it has in the past recessions though, says CNN Money. But because so numerous jobs were lost, higher growth than normal is required replace them. 7 percent of all jobs, or 8.4 million, were lost in 2008-09. Only 3.1 percent of all jobs were lost during the 2001 recession and also the jobless recovery that followed. During the 1990-91 recession, only 1.9 percent of all jobs were lost. In June 2009, the current recession was said to be over while six months later, sustained job growth began. There wasn’t a turnaround for 12 months after the first recession. This is the one from 1990-91. After the 2001 recession, job growth took 22 months to resume.
Population growth too much for economic expansion
Since employers started adding 200,000 workers a month, employment creation has been going down. CNNMoney said at that rate it would take more than three years to replace the jobs lost in 2008-09. The Christian Science Monitor explains that private sectors could create just 100,000 jobs a month. That wouldn’t help the joblessness rate go down though. Population growth continuously adds to the labor force, and workers who had given up reconsider and re-enter the labor force. Hiring is slow at the current level of economic expansion because many corporations have elevated output by working employees harder. There was another report put out by the Labor Department. This showed productivity dropped also. Growth needs to be sustained. Some individuals think the only way to do this could be to start hiring again.
Further reading
MSNBC
today.msnbc.msn.com/id/38988367/ns/business-eye_on_the_economy/
CNN Money
money.cnn.com/2010/09/02/news/economy/jobs_recovery/?npt=NP1
Christian Science Monitor
csmonitor.com/Business/2010/0903/Unemployment-rate-up-to-9.6-percent-but-private-sector-gains-jobs
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