The spinners in the media have been rejoicing over a declining unemployment rate (even the small decline reported over the last few months). Unfortunately, a decreasing unemployment rate is not necessarily good news. After all, if everyone dropped out of the work force, the unemployment rate would be zero (-0-)! A decreasing unemployment rate is not good news when it reflects a shrinking labor force--
Jobless rate 7.7%; 146,000 new jobs: "The government revised down job gains for September and October by a total 49,000. September's additions were revised from 148,000 to 132,000 and October's, from 171,000 to 138,000. . . . Meanwhile, the continuing sharp drop in the unemployment rate -- from 8.3% to 7.7% since July -- is surprising and at least partly reflects retiring Baby Boomers, says Chief U.S. Economist Jim O'Sullivan of High Frequency Economics. "What's happening here is the demographics have changed," he says. He says monthly job gains of about 75,000 are likely enough to keep the jobless rate from rising, down from 100,000 to 150,000. A shrinking labor force, however, does not bode well for economic growth because retirees have less spending power."
Tweet Follow @johnmpoole
The Big Picture
Financial Crisis - The Telegraph
JohnTheCrowd.com | The Sailing Website
Craig Newmark - craigconnects
- ► 2015 (131)
- ► 2014 (368)
- ► 2013 (380)
- Howard Dean may be right: Let’s Go Over the Fiscal...
- Windows 8 fails on desktop
- Quote of the Year
- Government, Antitrust, and Cartels
- New FCC rules will let a single company own a town...
- Think the U.S. doesn't have debtor prisons?
- Season's Greetings
- Windows XP Tablet -- think what might have been
- Gas tax hike could be part of fiscal cliff solutio...
- Google Revenues Sheltered in No-Tax Bermuda
- Pronouncements, Predictions, and Projections
- State Department Blamed for Benghazi Disaster not ...
- New home sales stagnant, cast shadow on housing
- Susan Rice and her political ambitions
- FTC nominee Joshua Wright to skip Google cases
- WCIT2012 -- the Debacle in Dubai
- McAfee settling into Miami - 'will not go back to ...
- More video from McAfee
- John McAfee - the CNBC interview (video)
- "Do you not know with how little wisdom the world ...
- The 90s Economic Boom Is Not Coming Back
- Declining Jobless rate due to shrinking labor forc...
- UN's ITU Should Be Dismantled says Former White Ho...
- ITU Proves It Is Unfit To Regulate the Internet
- John McAfee: "I wish I could just pack my bags and...
- Sticking With Windows 7
- The Payroll Tax - the problem and part of the solu...
- Cuba, free speech, and internet freedom
- The American brand and DHS
- Final Caveat on Windows 8
- Take Action: Add Your Voice to Keep the Internet #...
- Microsoft Windows 8: welcome to the worst in both ...
- Cat Signal Issued by Internet Defense League
- Early sales of Windows 8 are far below Microsoft’s...
- ▼ December (34)