Friday, December 4, 2009
Long Term Unemployment Worsens
The official unemployment rate decreases to 10% in November. So is the economy recovering?
Well, no, it isn't and here's why. First, the unemployment numbers are misleading, the government reported that we only lost 11,000 jobs in November, but this is because of the increase in seasonal and temporary jobs. The media also fails to mention that given the country's population growth, we would need to add 100,000 jobs per month just to break even.
Second, short term unemployment is decreasing, because long term unemployment is increasing. The number of Americans unemployed for at least 27 weeks reached 5.9 million in November. That's an all-time high. So what's happening.
So many people have been out of work for so long that they are giving up and now the government is spinning this as good news.