If you hold a conversation with someone very ill you probably pick up on the fact that they are sick. Medical doctors specialize in telling us why they are sick. Similarly anyone living in America over the past year knows the economy is sick. Macroeconomists try to tell us why this is the case.
This leads to the latest batch of economic numbers. Looks like the unemployment rate went up to 9.8%. To the casual observer this is not much of a jump, but it is actually worst than it appears. Lets dive deeper into the numbers: Many economists and politicians are sold on the fact that we are in a recovery. They cite a small uptick in housing prices and a small decline in 2009 second quarter GDP (with the implication that we are now in the upswing). To quote the article: “The latest data "sets the stage for an improved economic outlook for the rest of 2009 and throughout 2010," said Aaron Smith at Moody's Economy.com.” (Sounds optimistic… right... like any news coming after that date will be positive). Now this info: We lost a net total of 263,000 jobs last month (more than expected). In addition this takes into consideration that previously unemployed workers have begun part time work to make ends meet. They are counted as employed. Take this into account and the number of 9.8% unemployed actually underestimates the problem. In addition to this, these numbers do not take into consideration the discouraged workers effect. We will discuss these things in greater detail in the class soon (oh joy!).
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This makes me wonder how many times the economists and politicians keep important numbers such as the massive decrease in job loss from us. I know that they are probably trying to brighten our spirits because of the recession, but they are also concealing vital information. I was definitely fooled when researching information about minimum wage because some economists claimed that the job loss wasn't that severe. What else are they hiding from us?
ReplyDeleteI think most Americans are confused by all the numbers and statistics that politicians spit out left and right. No matter what you are trying to prove, or who's side your on, there is always going to be a case study or a statistic that can somehow be twisted to look in your favor. To the average American who is currently working and does not much about the actual unemployment rate, 9.8% might not seem like such an extreme number. However, when you look at that percentage in the context of the actual hundreds of thousands of people who are continuing to lose their job on a daily basis, that number is staggering.
ReplyDeleteHow are people going to survive if so many jobs are being laid off? Money is a big issue right now because everything has gone up in price or is. Families can't afford it.If I was unemployed I would be worried because I am a college student and need all the money I can get. I have a job currently so I don't have to worry about unemployment as we speak. I feel bad for the people who don't have a job and have a family and have many bills to pay.
ReplyDeleteI am really worried that I won't be able to find a teaching position out of college. My sister has a Masters Degree in Education and has been going to many interviews and cannot get a job. And her school loans are so high. Practically everyone in our economics class are education majors so how are we all going to get jobs if the recession is not recovering?
ReplyDeleteUntil researching the unemployment rate of engineers, I thought that the unemployment rate for engineers would be at a minimum and I would not have too much trouble finding a job after college. Unfortunately for me and everyone else currently majoring in engineering, IEEE (Institute of Electrical and Electronics Engineers) listed the unemployment rate for engineering in general as increasing from 2.9% in the last quarter 2008 to 3.9% in the first quarter in 2009 with electrical and electronics engineering increasing from 2.4 to 4.1% and mechanical engineering increasing from 2.1 to 4.2% over this time period. Even though these unemployment rates are less than half U.S. unemployment rate, it shows you that you better know what jobs are available in your field before you find yourself out college, without a job, and without money.
ReplyDeleteNathaniel Weldon
The unemployment numbers are staggering--even those working in what might be considered "safe" occupations are becoming nervous. I have a few friends who are nurses and they are now experiencing cutback in hours.
ReplyDeleteA few recent nursing school graduates can't find a job....when we can't hire those in a medical field, it's a real indicator that the economy remains "sick".
To say that this country is in an upswing is ridiculous! There are so many people out there including myself that will love to have a part-time job just to some an extra couple dollars. The fact is, there are no jobs! Barely anybody is hiring! How can a grown man with a family and bills keep up with no income. This country is superior to many other countries in the world. We live in America! How is it that more and more people cannot afford to support their own family.
ReplyDeleteRobert Fitzsimmons