posted on Jan, 9 2004 @ 08:47 AM
THe uninitiated will see the REDUCTION of the unemployment rate to 5.7% from 5.9% as a sign of good times ahead.
Here comes "the REST of the story"...
This country only managed to create 1,000 jobs last month. Analysts were projecting an increase of 148,000 jobs which still wouldn't have put all the
workers that entered the labor force to work (estimated at 300,000 a month entering the labor force).
This means that we actually INCREASED the number of able body workers who have no job by 299,000 people(300,000 new workers - 1,000 who got work =
299,000 ADDITIONAL workers looking for work).
So how is it the unemployment rate went DOWN? Any logical person might ask. The unemployment rate is an outdated survey conducted by polling
households. This survey also takes folks who have given up looking for a job OUT OF the numbers(!).
That being said I fear what I predicted a few months ago is coming true.
The GDP is soaring yet unemployment remains high, too high, how can this be?
Technology is playing a role in this to be certain but so is the outsourcing of jobs to cheaper labor in foreign countries.
It is going to take time and alot of American ingenuity to find work for these folks who have lost their jobs to overseas workers.
If you have a 401-K or Roth today would be a good day to put some of your "fixed income" money into Bonds...
It's going to be a hard road getting the U.S. employment picture back into focus as long as we keep using skewed numbers to forecast our position.
[Edited on 1-9-2004 by Springer]