Friday, 5 August 2011

New job numbers up but even more unemployed giving up.

Bloomberg reports 117,000 new jobs in July (37,000 losses in the public sector, 154,000 gains in the private sector).    Unfortunately, another 193,000 left the work force.  Many of these are people giving up and their decision produced today's drop in the unemployment rate from 9.2% to 9.1%.  It takes 125,000 new jobs monthly to just tread water, keeping up with school-leaving kids and new immigrants who swell the workforce.  See chart detailing how many years it will take to bring down the unemployment rate using gloomy and rosy scenarios.
h/t Hot Air

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