US Unemployment reaches 26 year high at 9.5%. 467,000 Americans lost their job last month, and the US Government is expecting this trend to persist till early next year.
Some claim that if adjustments are made for those who want to get a job, but have given up looking for a job, the number of Unemployed Americans now total 35 million, which is extremely significant, considering that America has a total potential workforce of close to 180 million, with the balance 120 million consisting of retirees and those too young to work.
There was a mention that Employment is a Lagging Indicator, and thus, this indicator will only turn around after the economy has picked up. However, the Economics Textbook written by Ben Bernanke did not categorize the Unemployment Indicator as Leading or Lagging.
This is a significant observation because nobody is questioning that the economy will recover despite the fact that Unemployment continues to rise.
However, if we consider the fact that Consumer Spending accounts for 72% of the US GDP, I question how far the US Economy can really recover, in a Jobless Recovery?
US Government Spending will no doubt drive a Jobless Economic Recovery, but such massive spending cannot continue.
Will the US, and the World, end up with a Lost Decade not unlike that experienced in Japan? No one knows, and we certainly cannot discount this possibility. The General Consensus is that even if there is an Economic Recovery, it will be a weak, lethargic economy, for the foreseeable future.
Best wishes,Some claim that if adjustments are made for those who want to get a job, but have given up looking for a job, the number of Unemployed Americans now total 35 million, which is extremely significant, considering that America has a total potential workforce of close to 180 million, with the balance 120 million consisting of retirees and those too young to work.
There was a mention that Employment is a Lagging Indicator, and thus, this indicator will only turn around after the economy has picked up. However, the Economics Textbook written by Ben Bernanke did not categorize the Unemployment Indicator as Leading or Lagging.
This is a significant observation because nobody is questioning that the economy will recover despite the fact that Unemployment continues to rise.
However, if we consider the fact that Consumer Spending accounts for 72% of the US GDP, I question how far the US Economy can really recover, in a Jobless Recovery?
US Government Spending will no doubt drive a Jobless Economic Recovery, but such massive spending cannot continue.
Will the US, and the World, end up with a Lost Decade not unlike that experienced in Japan? No one knows, and we certainly cannot discount this possibility. The General Consensus is that even if there is an Economic Recovery, it will be a weak, lethargic economy, for the foreseeable future.
Ooi
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