Are Jobs Really Starting To Go In The Right Unemployment Direction?

By Audrey Howard on February 8, 2010, 7:24 am

When first looking at the latest unemployment figures the job situation saw a modest improvement. Many of the figures were pointing in many different directions. The U3 figure, which most people are familiar with did decline to 9.7%, while the U6 category which counts the underemployed, dropped .8 percent to 16.5 percent.

Figures Can Be Interpreted In Many Ways

The way in which unemployment figures are counted have changed periodically. Under Clinton those people who if counted would make the figures look worse, were moved into a different category. Besides, it is not an exact science getting to the bottom of the unemployment figures. During the height of the Great Depression 25% unemployment was the norm and it is certain these figures counted those underemployed as well. They had to count them, otherwise, how were these people going to eat? And, is 16.5 percent that far away from the unemployment figures from the Great Depression?

Manufacturing Slowdown

Factory payrolls increased by 11,000 but Americans do not manufacture much anymore. As an example the auto industry is not a big part of manufacturing like the past. Whether payrolls increased or decreased is open to question in many categories. Separate surveys show different figures. Inventory in many stores is non-existent. The increase in factory jobs or manufacturing was due to the replacement of inventory. This will not be permanent. With a replenished inventory workers again will not be needed. Unemployment can rise again. It certainly will not come down more anytime soon. Besides, the employers are used to doing with less workers and earning more profit. This will remain their position for the foreseeable future.

What is missing from the picture are the workers who have dropped out of the labor force and are no longer counted at all. There are new workers, some from immigration, who are entering the labor force all the time. The number of jobs created is still pathetic and will not make a dent in the unemployment problem for years to come. Many jobs are government jobs. While the private sector shrinks the government sector is growing. Most unions are in the government sector. The government employees are the ones with job security.

 

The Work Week

The average workweek increased from 33.8 to 33.9 hours per week. Average earnings increased. These figures are due to overtime. It is far cheaper to have an employee work overtime than hiring a new employee, especially if the company has to supply the worker with benefits. It is said growth in the workweek portends a recovery. We shall see.

Related posts:

1. Employment/Jobs: 37% Of Unions Are Now Government Workers
2. 7000 Government Jobs Gained – All Other Sectors Lost
3. Tier V And Unemployment: Ongoing Census Lay Offs Helping Drive Up Rate
4. Unemployment Extension: Some Americans Being Left Out
5. Unemployment: Nearly One-Third Of March Jobs From Temp Census Workers

One Response to “Are Jobs Really Starting To Go In The Right Unemployment Direction?”

1. Brenda Rooney says:

   August 14, 2010 at 11:48 am

   No They Have Not!! Hundreds of Thousands of jobs are still being lost by scores regardless of Obama’s another Gang Buster Save My Political Ass Speeces. The Intentional and Deliberate Deception as Hitler and Criminal Tactics with aiding the Muslim World instead of unto the People and unto his Oath. NO,
   MR. PRESIDENT I HAVE NOT FORGOTTEN YOU.