When unemployment ticks higher in the months ahead, and people start freaking out about a dying recovery, remind this:
Some economists assert that the unemployment rate, which held steady at 9.7 per cent in March, is likely to be driven higher as many more such people are lured into looking for work by signs of recovery.
The number of people looking for jobs rose by more than 200,000 last month compared with February, according to the Economic Policy Institute — and that’s a good sign, economists say. It means that Americans are seeing more jobs being created and that they’re optimistic about their prospects.
But the supply of new jobs — 162,000 in March, the biggest monthly increase in three years — will accommodate only a fraction of the unemployed.
Thus from the perspective of the individual job seeker, it’d be far better if the discouraged stay home.
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