I’m beginning to sound like a broken record but it’s true: This economy is going nowhere unless we start creating some jobs.
As for the recent drop in the unemployment rate to 9.0%, I’m not buying it since it comes from Uncle Sam.
The real figure is likely closer to what Gallup is reporting today…
From by Dennis Jacobe entitled: Gallup Finds U.S. Unemployment Up to 10% in Mid-February
“Unemployment, as measured by Gallup without seasonal adjustment, hit 10.0% in mid-February — up from 9.8% at the end of January.
Underemployment, in which Gallup combines part-time workers wanting full-time work with the U.S. unemployment rate, surged in mid-February to 19.6% — mostly as a result of the sharp increase in those working part time but wanting full-time work. Underemployment now stands at basically the same place as it did a year ago (19.8%).
The unemployment rate in mid-February is 0.8 percentage points lower than it was at this time a year ago, compared with a 1.1-point improvement at the end of January. This suggests that jobs are less available now than they were in January.
More troubling, however, is the surge in underemployment. On this broader basis, current job conditions are barely improved from what they were at this time last year. Essentially, what has happened over the past year is that some people who were unemployed got part-time jobs but are still looking for full-time work. This is not much to show for a year in which many macro-economic indicators showed improvement.
This is likely why Gallup’s self-reported spending remains stuck in “new normal” even as consumer optimism continues to hit new highs. Jobs remain the key to getting the U.S. economy moving, and mid-February underemployment results suggest little or no progress is being made in that regard.”
No jobs. No dice. It’s that simple.
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