The U. S. unemployment rate rose in April along with job creation, in a bit of statistical hocus pocus that's not as baffling as it looks. It does show how hard it is going to be to bring the unemployment out of the hole it dug in the recession. In a jobs report released by the Labor Department on Friday, the US unemployment rate rose to 9.9 percent in April from 9.7 percent in March. But the very same jobs report said nonfarm payroll employment rose by 290,000 in April. How is it the unemployment rate and created jobs can rise at the very same time?
Sign of healing from jobs report
The jobs report showed the U. S. unemployment rate rising along with jobs creation because of a healing jobs market. The Associated Press reports the jobless rate rose because 805,000 unemployed Americans who were so discouraged they had given up are beginning to look for work and personal loans. If the economy continues to pick up momentum, numerous economists predict that jobless claims could continue to rise along with jobs creation. Last month a total of 15.3 million individuals were nevertheless out of work. A new high, the number of individuals that are out of work for six or a lot more months rose to 6.7 million in April. These individuals made up 45.9 percent of all unemployed individuals, also a record high.
Unemployed seeking work
The rise within the unemployment rate within the jobs report Friday also contradicts a Labor Department report that was presented on Thursday showing that first-time jobless claims fell by 7,000 last week, to 440,000. This is the third week a decrease in jobless claims has been reported. The four-week average of jobless claims declined 4,750 to 458,500, the first decrease in five weeks - further evidence that things are looking up for individuals seeking work.
Panic distracts Wall Street
The improving jobs report may be good news for manufacturers, construction companies, retailers, professional and business services, education and health services. A part of the economy that isn’t producing anything of value hasn’t changed. Wall Street is too busy concentrating on Europe’s debt crisis which looks about the very same as America’s financial meltdown. Bad news in Europe sent traders into a panic Thursday. The Dow Jones industrial average plummeted almost 1,000 points and was wracked by spasms into Friday.
Economic growth needs to double its present rate for job creation to start reducing unemployment rate. The economy, as outlined by the Commerce Department, expanded 3.2 percent in the first quarter of 2010 – the third straight quarter of growth. The Associated Press reports that for the unemployment rate to fall, economists say the economy needs to grow at an annual rate of 6 percent to 8 percent a quarter. We would all be required to go buying with that rate of growth. But nationwide average hourly earnings only increased by one penny in April from March to $ 22.47.
The jobs report
sent traders into a panic