unemployment

Anyone Know Where We Can Find 10,600,000 Jobs?

Think about this. The U.S. needs 10,600,000 jobs just to get back to pre-recession unemployment rates. EPI:

The labor market is now roughly 10.6 million jobs below the level needed to restore the pre-recession unemployment rate (5.0% in December 2007). To get down to the pre-recession unemployment rate within four years, the labor market would have to add roughly 325,000 jobs every month for that entire period.

Even the OECD is reporting the United States needs 10 million jobs.

Creating jobs has to be a top priority for governments,” said OECD Secretary-General Angel Gurría, launching the report in Paris. “Cutting unemployment and fiscal deficits at the same time is a daunting challenge but it needs to be tackled head on. Despite signs of recovery in most countries, the risk remains that millions of people may lose touch with the labour market. High joblessness as the new normal can not be accepted and has to be tackled by a comprehensive policy strategy.

Even worse, the OECD estimates it's member countries need 80 million jobs!

Chart-worshipers, part-swappers, and inequality

The whispers on Wall Street lately have been the feared "double-dip".
There is a much louder chorus of people proclaiming that we are only looking at a "slow-down". Of course they were the same people who were telling us as recently as April that we were in a "V-shaped" recovery.

Generally speaking, Liz Ann Sonders agrees.
"I'm amazed people still say it's not a 'V'-shaped recovery, which to means they're simply not looking at the charts," says Charles Schwab's chief investment strategist...

Ah, yes. The charts. I have several issues with people who say things like this.

We Don't Have Jobs, Fed Will Raise Rates Anyway

We can’t wait until unemployment is where we’d like it to be” or inflation gets “out of control” to tighten credit

The above is a quote from Federal Reserve Chair Ben Bernanke.

Gets worse, Bernanke believes the economy will not dip into another recession, yet of course, unemployment will remain at high levels.

While the Fed will raise interest rates from a record low before the economy returns to “full employment,” Bernanke said officials don’t know when that process will start. The banking system isn’t fully healthy and lenders are “cautious” in providing credit, he said.

“The unemployment rate is still going to be high for a while, and that means that a lot of people are going to be under financial stress,” Bernanke said at the event, part of a dinner hosted by the Woodrow Wilson International Center for Scholars.

Bernanke’s stance is consistent with that of several Fed colleagues. Atlanta Fed President Dennis Lockhart said June 3 that the central bank may need to raise rates even with “unacceptable levels of unemployment,” while Eric Rosengren of the Boston Fed said last month it wouldn’t be “appropriate” to have rates close to zero with the economy at full employment.

Unemployment 9.7% for May 2010

The May 2010 monthly unemployment figures are out. The rate decreased to 9.7% and the number of jobs gained is 431,000. 411,000 of those jobs were temporary Census workers. Only 41,000 private sector jobs were added. The official unemployment rate dropped due to the temporary Census hiring and people plain fell off the count.

Total nonfarm payroll employment grew by 431,000 in May, reflecting the hiring of 411,000 temporary employees to work on Census 2010. Private-sector employment changed little (+41,000). The unemployment rate edged down to 9.7 percent

 

 

Below is the nonfarm payroll, seasonally adjusted:

 

Unemployment 9.9% for April 2010

The April 2010 monthly unemployment figures are out. The rate increased to 9.9% and the number of jobs gained is 290,000. How the rate can increase when the U.S. gained that many jobs will be answered below.

Nonfarm payroll employment rose by 290,000 in April, the unemployment rate edged up to 9.9 percent

 

 

Below is the nonfarm payroll, seasonally adjusted:

 

 

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