Friday, August 7, 2009

The Real Unemployment Rate

As expected, July's stats are out today: a 9.4 percent U-3 for July.

Of course, everyone's excited about the dip in the overall rate (as the U-3 was 9.5 percent last month), but the New York Times offers an important qualifier, namely "that the unemployment rate had only declined because 400,000 people gave up their search for work and left the labor force," so that a month which saw another 247,000 jobs shed looks like a positive trend. Additionally, the "White House and economic forecasters still expect unemployment to reach 10 percent or more before it begins to fall back."

Incidentally, Canada's job losses last month (44,500) were three times as high as predicted.

1 comment:

toronto realtor said...

Well, quite unexpected and big amount of people losing jobs in Canada, wow. Wondering whether this is just a consequence of the recession or whether the crisis never really ended.

Regards, Julie.

Subscribe Now: Feed Icon