Monday, March 7, 2011

U.S. labor market - still sick

A lot of what might appeal to a February report by the U.S. labor market: 1) the growth of private employment to 222,000 per month, almost exactly coincided with the published data of ADP and regular growth in the period between 2006 and 2007, and 2) the unemployment rate fell a little further up 8,9%, compared to 9,8% in November, and 3) Diffusion indexes of industry showed the maximum working set in 1988, saying that the working set is very wide.

However, although the labor market is improving, he still has big problems. For example, the level of the active population continues to decline, accounting for 64.2% already from a peak of 66,4% in early 2007. Strictly speaking, the fall in unemployment in recent months, with 9,8% to 8,9% due almost entirely to that previously unemployed people are leaving the labor force, and not the fact that people find work. Since September, employment rose by less than 200,000, while the number of unemployed declined by more than 1.1 million, largely due to the fact that 1.4 million people left the labor force. Over the past three years, these have already accumulated about 7 million now in America, 140 million are employed in the total population of 310 million, in other words, only 45% of the population are working. Not surprisingly, the U.S. is weakening.

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