May 4, 2012 2 Comments
Unfortunately this was another disappointing month for job creation and the unemployed. The forecast was for 168,000 new jobs created and for the official unemployment rate to stay at 8.2%. 115,000 jobs were created, well below the forecast and causing major speculation that the job growth has stalled. The unemployment rate, which is conducted by a different survey than the job creation survey, appears like good news because of the drop, but instead its even worse news. The reason for the drop is that more people have given up and left the job market completely. The number of longterm unemployed did not change last month, its still 5.1 million, and they make up 41.3% of all unemployed people. This is an unprecedented number, worse than during the Great Depression. The number of unemployed people did not change either. A broader survey puts the real unemployment rate at 14.5%, which is staggering. Federal Reserve officials have stated they are expecting sluggish growth for the rest of the year; if it gets worse than they predict the Fed might take action to stimulate the economy.
So, what does all this mean? It sucks basically. The amount of unemployed and longterm unemployed has not dropped in 6 months; the job growth isn’t high enough to break even. To all the unemployed people it doesn’t show much encouragement since the hiring situation is not predicted to get any better this year. I guess my advice to everyone who is looking for a job to keep at it; try different ways to look, to network, to be out there. While this report is incredibly disappointing it does still show growth, no matter how anemic.