American Jobless Rate On The Rise?


With unemployment remaining at 9.7% for some time now, the question arises as to what the real unemployment rate really is. Many individuals have given up looking for work, which takes them out of the statistics. Should these individuals re-enter the market, the unemployment rate will undoubtedly rise.

In addition, the U6 employment rate of part-time workers who want full-time work is up in the 16% range. The method the government uses in determining its statistics has changed over the years, always to put a better face on the unemployment situation.

Productivity is going up, which tends to point out that employers are having their employees do more work. This points to the idea that no hiring will be done anytime soon. Additionally, with employers uncertain about the effect of health care reform and other laws which will affect businesses, hiring is on hold.

The rise in the jobless rate or its remaining steady had been blamed on the bad February weather. Employers report the statistics via computer, therefore, this excuse should be examined closely. Not taken into consideration are the fundamental changes that employers are initiating. This would entail doing with less workers and conducting more of their business abroad.


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