Good News? or Bad News?
Depends on your point of view, it could be both. While a decrease in the Unemployment Rate generally means that the economy is adding more jobs this is not the case this time. The rate dropped due to 368,000 people giving up the hope of finding a job and dropping out of the workforce. Not Good.
The U.S. Dept. of Labor reports the civilian workforce is now 154.645,000 people; which is about the same size it was in August of 2008, pre-recession. The Bureau of Labor statistics also shows the civilian population that had a job or were actively looking dropped to a low of 63.5% (also known as the Labor Participation rate) which we have not see a rate this low since 1981.
Sounds bad, doesn’t it? Well, cheer up. If 368,000 people stopped looking for work that means there are 368,000 people less in competition for jobs. How that breaks down for our local metro area, I do not know, but I am sure there has been a decrease locally as well.
The number of net new jobs added to the economy was 96,000 in August. Sounds good doesn’t it? Any number of new jobs added is a good thing, but what the economy needs is more than 132,000 jobs per month just to pick up the new people added to the workforce each and every month on average. So on the face this does not mean we are adding enough new jobs to take care of new people coming into the workforce let alone those that are looking for work. I know the politicians like to tout over 4.5 million new jobs have been added in the past 29 months, but if you take into account the new people added to the workforce of at least 3.8 million (and I am using the lower number of 132K people/month, I have heard as many at 150K new people come into the workforce each month which would mean 4.35 million net new workers over 29 months) that means only 700,000 new net jobs have been added for the 8+ million people displaced from the workforce due to the recession.
So look beyond the hype of the politicians. Understand what is really going on. Never, and I mean never, give up hope and faith that God has the perfect job just for you. Networking is the key and keeping busy in your search keeps you focused on finding a job. Sitting in a room staring at the TV or four walls is not what you need to be doing. Listening to the news, which they like to focus on the bad, just will sink you into a deep valley you do not need to be in. Listen to positive things, get out and network. Our groups has had 100 people land a job during the past three years or about 2.3 people per month! That is a positive thing. Maybe you will be next. I pray you will be.