The numbers on employment are out. 175,000 jobs were created last month, but the unemployment rate ticked up to 6.7%. Looking at the big picture, 175,000 jobs probably keeps us even with population growth, so we are not losing ground in regards to job creation. 175,000 is anemic though. The reality is that this has been the slowest recovery to any recession since the depression in the 1930's.
What is missing from the employment numbers is what kind of jobs are being created? I know that any job created is good news, but if most of the jobs being created are low wage/low skill jobs, that's not very good news. We need good paying jobs that encourage people to increase their skills and experiences. That is what produces a healthy economy.
Now the unemployment rate ticked up due to more people looking for work. So the people who fell off the back end of the formula (the labor participation rate) are now starting to come back. If that is the case then we can expect to see the unemployment ratio continue to increase. Though the employment numbers are not bad, I think they are still weak.
What do you think?
No comments:
Post a Comment