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ProSense Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Jan-07-11 11:51 PM
Response to Original message
4. No
"The reason the unemployment numbers went down is because the number of discouraged workers..."

Discouraged workers contributed to half the drop. The other half (.2 percent) is attributed to job creation.


The December jobs report shows continued improvements in the labor market, but they were modest. Payroll employment growth was just 103,000, average hours held steady at 34.3, and average hourly wages increased by only three cents. Though the unemployment rate dropped to 9.4%, around half of the improvement was due to 260,000 people dropping out of the labor force, leaving the labor force participation rate at 64.3%, a stunning new low for the recession. Incredibly, the U.S. labor force is now smaller than it was before the recession started, though it should have grown by over 4 million workers to keep up with working-age population growth over this period.

The good news in this report is that December caps an entire year of job gains in the private sector. The bad news is that three full years after the recession officially began the U.S. is still near the bottom of a deep crater. Where does the Great Recession, three years out, stack up historically? The accompanying figure, which compares the percent employment change by month from the start of each post-WWII recession, shows that the Great Recession is far outside the experience of any this country has seen in 70 years. Three years out, the labor market is still down a larger percentage of jobs (5.2%) than at the most severe point of any other postwar recession.


While the labor market is now adding jobs, it remains 7.2 million payroll jobs below where it was at the start of the recession three years ago. And even this number understates the size of the gap in the labor market by failing to take into account the fact that simply keeping up with the growth in the working-age population would require the addition of another 3.7 million jobs in those three years. This means the labor market is now nearly 11 million jobs below the level needed to restore the pre-recession unemployment rate (5.0% in December 2007). So, despite the job growth of 2010, we remain near the bottom of a very large hole. To achieve the pre-recession unemployment rate in five years, the labor market would have to add nearly 300,000 jobs every month for the entire period. Decembers modest improvement offered 103,000 pieces of good news, but little collective cheer.

The rate dropped, it didn't go up, and jobs were created, although short of expectations.

The reaction to this report should be viewed in context of a report that could have continued the November 2010 path (a decline in the number of jobs created and an increase in the unemployment rate). Instead it's continuning to move in a noticeable positive direction, especially with the October and November being revised up.

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  -Talk about cooking the unemployment stats MadHound  Jan-07-11 11:37 PM   #0 
  - Sad to K&R  leftstreet   Jan-07-11 11:43 PM   #1 
  - Eight million jobs are needed to erase the "bikini graph" -- and that's not counting the ones we  Brickbat   Jan-07-11 11:45 PM   #2 
  - kick  emilyg   Jan-07-11 11:51 PM   #3 
  - No  ProSense   Jan-07-11 11:51 PM   #4 
  - Deleted message  Name removed   Jan-08-11 12:04 AM   #5 
  - That's funny  ProSense   Jan-08-11 12:21 AM   #10 
     - Cute, but again off the mark  MadHound   Jan-08-11 12:26 AM   #12 
        - Are you joking?  ProSense   Jan-08-11 12:32 AM   #13 
           - Exactly,  MadHound   Jan-08-11 07:43 AM   #22 
  - January's figures will tell the tale about the December job increases -  lynne   Jan-08-11 12:05 AM   #6 
  - Are we 99ers part of that "discouraged " crowd?  thecrow   Jan-08-11 12:15 AM   #7 
  - Apparently that's the only real plan this administration has  MadHound   Jan-08-11 12:17 AM   #8 
  - I know several 99ers  somone   Jan-08-11 12:18 AM   #9 
  - 99ers march on Washington -  TBF   Jan-08-11 07:51 AM   #23 
  - 99er are accounted.  Statistical   Jan-08-11 11:14 AM   #39 
     - Got a link to something that interprets the meaning of this?  thecrow   Jan-08-11 04:40 PM   #47 
  - Kicked and recommended.  woo me with science   Jan-08-11 12:23 AM   #11 
  - Actually, the household survey recorded an increase of 297,000 in employment IN ADDITION to the 260k  BzaDem   Jan-08-11 02:02 AM   #14 
  - KICK FOR TRUTH -- which was in the OP, not the load of horseshit to which I'm replying.  Zhade   Jan-08-11 03:51 AM   #19 
  - See, normally, if you call a post "horseshit," you're at least supposed to identify the part you  BzaDem   Jan-08-11 04:08 AM   #20 
  - If we know we aren't creating enough jobs to keep up with population growth  TheKentuckian   Jan-08-11 08:10 AM   #28 
  - The US economy will not recover until most goods purchased by Americans are made in the US.  AdHocSolver   Jan-08-11 02:03 AM   #15 
  - Adhocsolver, I'm sure most of us wish stores stocked 'made in America' goods  Mimosa   Jan-08-11 03:48 AM   #18 
  - There are new records being set for prople taking early Social Security  eridani   Jan-08-11 02:10 AM   #16 
  - Involuntary 'early retirement'  Mimosa   Jan-08-11 03:42 AM   #17 
  - About a month ago I signed up online to get SS early with the thought  Vinca   Jan-08-11 07:53 AM   #24 
  - Well....  hayseed   Jan-08-11 07:23 AM   #21 
  - situation normal  creon   Jan-08-11 08:01 AM   #25 
  - It is still a form of cooking the books,  MadHound   Jan-08-11 08:04 AM   #26 
     - and Obama doesn't have ownership to this technique either  RegieRocker   Jan-08-11 10:59 AM   #37 
     - yes  creon   Jan-08-11 12:18 PM   #43 
  - gov'ts lie. that includes democratic party govt's.  KG   Jan-08-11 08:09 AM   #27 
  - This has nothing to do with Obama it has  RegieRocker   Jan-08-11 08:43 AM   #29 
  - Ah, so since we've been "cooking the books forever" it's OK to continue to do so?  MadHound   Jan-08-11 09:36 AM   #31 
     - Hell no  RegieRocker   Jan-08-11 10:35 AM   #32 
     - I'm guessing you think he's a SEKRIT MUSLIN too.  Arkana   Jan-08-11 10:37 AM   #33 
        - I'm guessing you're deliberately jumping to outrageous conclusions,  MadHound   Jan-08-11 10:48 AM   #34 
        - You're post stinks of incomprehension  RegieRocker   Jan-08-11 10:53 AM   #36 
           - Actually this tactic of using the people  MadHound   Jan-08-11 12:18 PM   #42 
        - What the hell are you talking about?  RegieRocker   Jan-08-11 10:49 AM   #35 
           - Take a look--I wasn't responding to you.  Arkana   Jan-08-11 12:39 PM   #44 
              - my bad....sorry  RegieRocker   Jan-08-11 03:07 PM   #45 
  - THANKS NAFTA  timo   Jan-08-11 08:45 AM   #30 
  - How would you calculate the number?  Still a Democrat   Jan-08-11 11:08 AM   #38 
  - I suspect President Obama of being ...  GeorgeGist   Jan-08-11 11:20 AM   #40 
  - You're confused about the numbers, MadHound  Still a Democrat   Jan-08-11 11:20 AM   #41 
  - k&r  Liberal_in_LA   Jan-08-11 03:25 PM   #46 

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