Is No News Good News With Unemployment Rate?
The Bureau of Labor Statistics (BLS) reported its latest update on the state of unemployment and as we eagerly waited to hear how the job market was impacted in December, it was released that the unemployment rate held steady at 10%. While we are not trying to ignore the fact that this number is still significant, especially given that 85,000 jobs were shed in December, we are pleased to see that it has not increased. So does this unemployment rate mean that we are working our way out of the recession and that jobs will start to open up?
Here are some highlights from today’s NPR coverage that captures the good and the bad of what the BLS unemployment rate signifies:
- Analysts are expecting the unemployment rate will gradually start to decline in the coming months.
- There was a big jump in temporary hiring, with 46,500 extra jobs, bringing the total increase in temporary employment to 166,000 since July.
- November figures were revised to show that the economy actually added 4,000 jobs in that month, as opposed to the loss of 16,000 that was initially reported.
- A troubling sign is that more people were giving up on the search for a new job and a key reason that the unemployment rate did not rise any further last month.
- The Fed and most private economists predict the unemployment rate will remain above 9 percent through the end of this year.
- If the jobs market stages only a slow recovery, confidence and spending are likely to remain low, which will weigh heavily on an economy in which consumer spending accounts for 70 percent of all activity.
Bottom line is we are still in for a long road to recovery. So before you hand over the letter of resignation, be sure you have an alternate form of income you can depend on or another job lined up. If you are looking for a job or are seriously considering leaving your current place of employment for a new job, check out Glassdoor interview questions and reviews to help get a leg up on the competition.