recession

Why did unemployment jump?

The unemployment rate jumped from 5.0% to 5.5% in just one month, the largest jump in 22 years. Did everyone suddenly get laid off? No. The problem with numbers like this is that they are incomplete.

The one factor left out of the headline is the number of people who are considered to be in the workforce -- either with a job or actively seeking a job. For the past five months, the number of people with a job has declined, but the unemployment rate barely budged because so many people gave up and weren't considered part of the workforce. Last month, about 400,000 people re-entered the workforce; combined with 49,000 lost jobs, that caused the surge.

The real problem is in the long-term numbers. Note the chart below:

This chart shows the percentage of adult Americans who have a job, from 1948 to the present. Notice that the chart generally rises when the economy expands and falls during a recession (with a slight lag). Notice also that every peak over the last 45 years is higher than the previous peak -- except one.

Dan Jacoby's picture

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Bush Family Endorses John McCain: America Repulsed

The Big Bush, Little Gerogie Bush, and Jeb Bush have all given John McCain their approval. Could there be a worse endorsement? Does America REALLY want yet ANOTHER four years of failed Bush policies? I think that is a resounding NO!!!

The Bush family have brought us two of the least popular Presidents in American history.

The Bush family helped arm Saddam Hussein before declaring him our enemy. They have brought us two Iraq wars, the most recent has turned into a quagmire sucking our soldiers and dollars down with no end in sight and no exit stratgy and no strategic purpose.

The Bush family helped arm al-Qaeda, then stupidly ignored warnings of an impending attack, allowing al-Qaeda to hit us hard. And they have failed to stop al-Qaeda even AFTER they attacked us.

mole333's picture

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