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This morning’s unemployment report was a mixed bag. Yes, the unemployment rate went down. But, actually, that’s because people are choosing to drop out of the work force altogether.Hours worked and hourly earnings may have been up, but this is nothing like what people thought was coming after the booming ADP report.
But the story here is that while the unemployment rate may be falling, and wages and hours rising too, many are being left behind as a result of a recession that has brought structural changes to the U.S. economy (real estate sector blown to pieces).
And now many are dropping out of the workforce all together, as they can't find jobs to fit their skill sets.
One reason many aren't going back to work is that the construction sector simply isn't coming back. Those who lost their jobs here may have nowhere else to go.
In terms of the U.S. manufacturing sector, it's the 1930s. If you're looking for a job there, it may be improving slightly, but the situation is dim.
The unemployment rate is down to 9.4%. But what does that mean when more and more people are exiting the workforce?
Civilians unemployed for 5-14 weeks in in decline, but more and more people are being added to the long-term unemployed list.
And that has to be taken into consideration; the rate or decline in short-term unemployment isn't telling the structural story.
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