Out of necessity thousands of new jobs are created annually which has contributed significantly to reduce the number of jobless people. Most of this jobs are as a result of people employing themselves as opposed to relying on companies or organisations to employ them. Therefore considering this factors, the job market is on the upswing.
Today it is a low as 5 percent, which many economists consider a healthy level and will cause people to purchase more and even buy houses. 81,000 jobs, while small in the last seven months were added to jobs that offer triple digit salaries across the country. This bound have trickle down effect.
The same question again? I answered this: The labor force participation rate in Jan. 2009 was 65.7% meaning nearly two-thirds of working age adults were working or looking for work. Currently, it stands at 62.7% meaning we have witnessed the most rapid decline in U.S. history for labor force participation. That's over 7 million Americans and when they aren't counted in the workforce, the BLS doesn't count them when they calculate the unemployment rate. So before you join the Huffington Post in gushing over Obama, consider 92.6 million Americans aren't participating in the work force! That's how you get a fresh cycle low in unemployment.
The key question with the latest statistics is whether the reported lower unemployment rate is sustainable. The report, also, doesn`t state whether these jobs are full-time, part-time jobs and no data is available on the wages trend. However it`s an overall positive sign that the deteriorating job market situation has been overtaken. At least two consecutive quarters have to pass to cheer the end of above-6%-unemployment levels era.
The official unemployment rate is down. However more people have given up the search for work than ever before. Also more people are taking part-time employment at lower wages than before the recession. The official unemployment rates are a fantasy posted by the government to make people feel good about the economy.