The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.

Friday, August 1, 2014

July Jobs Report...A Sign Of An Improving Economy?

Democrat Party economic policy driven and enacted via the nation's 44th president is paying dividends. Policy, practice, procedure (3Ps) are working!

July 2014

Fifty-Two (52) straight weeks of job growth; a first since 1997! 

In past months, the consistent refrain was: "....but those numbers are low paying insignificant jobs."   Well, the "shark has turned." We are reading reports the July jobs report includes jobs growth in categories consider "Middle class."  I personal find use of the words 'middle class' a convenient media labelNonetheless, I respect efforts to differentiate July jobs from other reports that were infested with "low paying" hires. Media has to reach the ears and brain of the full spectrum of viewers; maybe "middle class" Jobs properly denotes jobs well about minimum wage level jobs.

The following CNN segment includes an indication of July hires at a level that clearly denotes economic improvement.

CNN Christine Romans July Jobs Report

CNN Money- Christine Romans

Twitter Post 
— The White House (@WhiteHouse) August 1, 2014

A much deeper perspective from the Center on Budget and Policy Priorities (CBPP).

Re-posted with permission from the Center on Budget and Policy Priorities

Center on Budget and Policy Priorities

"Today’s solid jobs report shows a labor market that’s moving in the right direction but still has a ways to go before everyone who wants to work has a reasonable chance of finding a suitable job.  Long-term unemployment (more than 26 weeks) remains a particular problem, and Congress dealt the long-term unemployed a harsh blow when it allowed federal emergency jobless benefits to expire prematurely at the end of last year.  Seven months later, long-term unemployment remains higher than when any of the previous seven emergency unemployment programs expired after previous recessions (see chart).  In addition, the share of the population with a job remains well below where it was at the start of the recession.
"Payroll employment growth has picked up in 2014 and the unemployment rate has fallen faster than expected, but weak labor force participation and persistent long-term unemployment continue to plague the jobs recovery.
"To be counted in the labor force, a person must have a job or be actively looking for one.  When jobs are hard to find, more people stop looking or stay home to care for young children, do home repairs, take courses at the local community college, or the like until job prospects improve.  These people are considered 'out of the labor force' rather than unemployed. 
"Over the past year and a half, the decline in the unemployment rate has been nearly entirely offset by a decline in labor force participation (the share of the population aged 16 and over working or actively looking for work).  As a result, the share of the population with a job has barely budged from where it plunged in the Great Recession.  Some of the decline in labor force participation reflects the graying of the population, with more Americans reaching retirement age, but economic research suggests that a significant share of it reflects weak demand for labor in a still-somewhat-sluggish recovery.
"Since the start of the Great Recession, long-term unemployment has been much higher and more persistent than at any other time in data that go back to the late 1940s.  People unemployed 27 weeks or longer still compose roughly a third of the unemployed.  That’s down from a peak of over 45 percent in 2010, but remains higher than the pre-Great Recession peak of 26 percent in 1982 (when overall unemployment was 10.1 percent).  While the long-term unemployment rate of 2.0 percent is below the peak of 2.6 percent immediately after the 1981-82 recession, it’s still considerably higher than the 1.3 percent rate when federal emergency jobless benefits for that recession expired in March 1985.
"People need to start returning to the labor force in greater numbers, and long term unemployment needs to fall much more before we can declare the labor market healthy."
Key points:
  • The unemployment rate edged up to 6.2 percent in July, and 9.7 million people were unemployed.  The unemployment rate was 5.3 percent for whites (0.9 percentage points higher than at the start of the recession), 11.4 percent for African Americans (2.4 percentage points higher than at the start of the recession), and 7.8 percent for Hispanics or Latinos (1.5 percentage points higher than at the start of the recession).
  • Long-term unemployment remains a significant concern.  Roughly a third (32.9 percent) of the 9.7 million people who are unemployed — 3.2 million people — have been looking for work for 27 weeks or longer.  These long-term unemployed represent 2.0 percent of the labor force.  Before this recession, the previous highs for these statistics over the past six decades were 26.0 percent and 2.6 percent, respectively, in June 1983, early in the recovery from the 1981-82 recession.  By the end of the first year of the recovery from that recession, however, the long-term unemployment rate had dropped below 2 percent. 
View the full statement: 3 pp.

Enact a lawsuit or impeach who?

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