So we finally hit
the double digit unemployment rate. The unemployment rate is what economists call a lagging indicator. This means that as we climb out of a recession (which we technically have done) there are certain things that happen at different times. For example, worker productivity increases relatively quickly. Once employers recognize that workers are bringing in more revenue they begin hiring temporary workers, then full time workers. The end result is a ‘lag’ between production increases and job increases.
Aside from the discouraged worker effect altering these number, another interesting paragraph in the article that centers on our classroom discussion of underemployment is quoted:
Counting those who have settled for part-time jobs or stopped looking for
work, the unemployment rate would be 17.5 percent, the highest on records dating
from 1994.
I think it is obvious to say that it is hard for everyone right now. I worked at a before and after school program ast year and by january i had seen parents pull their children out of the program because one of the parents had lost their jobs. It is sad but it is also reality and you have to think more about what you can do rather than what is happening in my eyes. The unemployment rate being 17.5 million with the people who stopped looking and people who settled for part time is reality. I myself decided to take a different job in the summer and my hours only lasted for two months before they cut back and i had to look for another option. Waitressing is my alternative and i think everyone needs to think that way at this point in time.
ReplyDeleteI immediately thought of our class when I heard the unemployment numbers.
ReplyDeleteI recently hired a "temporary" worker to complete specific projects--this may lead to a more permanent position in 2010. As you mentioned, the temp's have some opportunity to perhaps move to a permanent or full-time status. I certainly hope this is the case.
10.2 % of Americans are currently unemployed and this isn't even counting the workers who basically gave up on finding a job (discouraged workers). This is very sad for parents who cannot support their families basic needs because they cannot find anywhere to work. I thought we lived in a country of "great opportunity"! It is unfortunate that we have to go through this right now, but eventually temporary workers will be hired because of increased worker productivity. So, hang in their Americans.
ReplyDeleteThis is very depressing to think about. I mean, this just cause more unemployed workers to become discouraged workers in the first place. If that does happen, of course the unemployment rate will go down. But then there would be a shortage of people to hire for jobs. So not only will there be people with no jobs, but then there will be even more businesses with no employees... and then it will just become a lose-lose situation.
ReplyDeleteI read an article that said that the US unemployment rate is rising a lot faster than other countries because of Obama's massive stimulus plan and government spending. It is kind of interesting if you want to read about it. foxnews.com/opinion/2009/10/22/john-lott-unemployment-rising-faster-united-states/
ReplyDeleteIt is definately interesting to think about the fact that the unemployment rate really only covers those who are actively looking for a job. The part time workers or discouraged workers are not included. However that estimated number of 17% that includes them is an enormously high number when you really think about how many additional people that is, that have settled.
ReplyDelete17.5 percent of the population being unemployed is a huge blow. The amount of discouraged workers is slowly increasing and actions need to be taken to help these people try to find work. Families and individuals are falling quickly below the poverty line and trying to find any money they can. The fact that we are "out of the recession" does not seem promising and the gov needs to mobilize job productions to help our country.
ReplyDelete-Asia
Due to the unemployment rate It has cost me a raise and put a strain in my pocket. It feels like I am not going anywhere. Also my portfolio has suffered. Where is our money going.
ReplyDeleteWith the unemployment rate hitting double digits temporary or part time employment sounds good. However, what about those of us who have families to support? Where those workers supposed to find benefits for their families? I think that this is just like the Minimum Wage debate--there is no real solution. More and more workers are feeling despair. There has to be some solution soon.
ReplyDeleteAdrienne Oladipupo