January Jobs Report Isn’t All that Positive, Hides Deeper Problems

by an Unemployed White Male on February 9, 2010

in American Culture,Business & Economy,Recession 2009

The January 2010 jobs report showed a minor .3 percent drop in the unemployment, down to 9.7 percent nationwide. But it’s not good news; it’s more like a false positive. First, the number of people still in long term unemployment is still growing. That is both the number of people unemployed and the length of unemployment is still increasing. The report stated:

“The number of long-term unemployed (those jobless for 27 weeks and over) continued to trend up in January, reaching 6.3 million. Since the start of the recession in December 2007, the number of long-term unemployed has risen by 5.0 million.”

Second, though the unemployment rate is down, the labor force is contracting and shows no sign of slowing its fall. There are less jobs being created in this so-called recovery, and therefore less opportunities for employment. Past extreme recessions, as in the 1980’s, saw an expanding economy and increase of jobs and the labor force. This is not true this day in the recession.

Third, and following the above, job creation is falling. Temporary employment appears is falling despite positive growth only three months ago. Retail employment has dropped off in January, likely due to the end of the Christmas buying season. Additionally, I read elsewhere, once again, that many economists are still suggesting that it will take nearly five years to see job expansion anywhere near to pre-recession numbers.

Again, the reality is not what it appears to be. We’re still in deep shit.

The number of long-term unemployed (those jobless for 27 weeks and over)
continued to trend up in January, reaching 6.3 million. Since the start of
the recession in December 2007, the number of long-term unemployed has risen
by 5.0 million.
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