Many are getting excited that the unemployment rate dropped last month from 10.2% to 10%. Many are looking at this drop as signs of recovery. I think I will wait until next months figures are out. Remember back in July unemployment dropped back to 9.4% from 9.5% and everyone went gaga only to watch as the figure went back to climbing to 10.2%.
From The New York Times:
In the strongest jobs report since the recession began two years ago, the nation’s employers all but stopped shedding jobs in November, the government reported on Friday, and they appeared to be on the verge of finally rebuilding the work force.
The sudden and unexpected improvement surprised even the most optimistic forecasters. Instead of yet another six-figure job loss, only 11,000 jobs disappeared last month and instead of another rise in the unemployment rate, it went down, to 10 percent from 10.2 percent in October.
The thing to keep in mind is while the monthly loss of jobs appears to be slowing, the economy is still shedding jobs. Until the loss of jobs stops and we begin trending positively, optimism and celebration is very premature.
In order to stop job losses, we are going to need more than a positive spin on the negative numbers and much more action than Kabuki theater job summits.
Via: The New York Times