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Wow! Jobless Rate Dips 0.1% Percent!

From a joyous Associated Press:

In good sign, job losses slow as unemployment dips

By Jeannine Aversa, AP Economics Writer

WASHINGTON – Employers sharply scaled back layoffs in July, and the unemployment rate dipped for the first time in 15 months, sending a strong signal that the worst recession since World War II is finally ending.

A net total of 247,000 jobs were lost last month, the fewest in a year. That compares with 443,000 jobs that disappeared in June. And the unemployment rate for July declined to 9.4 percent from 9.5 percent in June…

"There’s clearly been a turn for the better," said economist Ken Mayland, president of ClearView Economics. "The worst is behind us in terms of layoffs."

Stocks surged after the report was released. In midmorning trading, the Dow Jones industrial average jumped 152 points, or 1.6 percent, and other stock averages also gained more than 1 percent.

White House spokesman Robert Gibbs quickly seized on the news, saying it was much-welcome evidence that the country has "pulled back from the edge."

The dip in the unemployment rate was the first since April 2008. One of the reasons the rate declined, though, was that hundreds of thousands of people left the labor force. The labor force includes only those who are either employed or are looking for work

Mind you, we’re supposed to be thrilled that unemployment has dipped by .1%.

Never mind that unemployment normally drops in the summertime. Never mind that these numbers will probably be adjusted.

Never mind that unemployment is still through the roof.

And never mind that even the article is forced to admit that “one of the reasons the rate declined, though, was that hundreds of thousands of people left the labor force. The labor force includes only those who are either employed or are looking for work.”

This article was posted by Steve on Friday, August 7th, 2009. Comments are currently closed.

9 Responses to “Wow! Jobless Rate Dips 0.1% Percent!”

  1. Melly says:

    “Today, we’re pointed in the right direction,” Barry said today in the Rose Garden.

    Is he smoking those roses?

  2. cerberus6 says:

    If you read the report from the Bureau of Labor Statistics the unemployed who have been out of work for 27 weeks or longer has increased 584,000. That brings the current total of people tracked in that category to 5 million.

    Smarter readers than me might know if these numbers are included in the 9.4% or are they dropped off the backend and are no longer counted. In any case it is getting tough out there and people know it.

    Hope & Change? No matter how thin you slice it, it’s still baloney!


    • Rusty Shackleford says:

      True, they use the new jobless claims because that’s a trackable value. But what’s also trackable is the number of people whose uneployment benefits have run out completely. Hopefully, they found retraining an option or some sort of way to become employed again…but often, when a person loses a job and are fortunate to find another, it’s usually at a lower pay, with no benefits offered for 3 months to a year. The struggle is minimized but in jeopardy is the mortgage, the healthplan, etc.

      Part of the blame for that is the typical lack of planning and not having a savings account for events such as this. Our grandparents and our parents knew of this and had savings enough to live frugally through the tough times. Since the 1950’s tough times is a relatively scarce animal. Even this current administration is counting on people making a decent wage to fund their utopias. How foolhardy is that?

      I was furloughed in 2003 during a mini-recession. Found a job 1.5 years later for half of what I used to make. Quickly found another three months later. Had to move each time. Thankfully I was single. After two years of that, I was called back to my old job at my old pay.

      Stress, chronic diabetes and a thyroid problem tried to kill me…but guess what? When I went to the hospital without any medical coverage whatsoever, they admitted me and treated me.

      So….this “people aren’t covered” is BS. Sure, I had a whopping hospital bill but I’m alive to pay it and later was able to negotiate it to something more believable.

      But the hard part is that unemployment numbers alone do not tell the whole tale.

  3. BannedbytheTaliban says:

    Apart from the whole, we only count people looking for jobs in unemployment data, it is FISHY that “a net total of 247,000 jobs were lost last month” and “443,000 jobs that disappeared in June” yet the % unemployed went down. There was a net decrease in jobs, but and net increase in % working. Are we reproducing faster than we are hemorrhaging jobs? I think we need to report this to the mis-information zsar.

  4. proreason says:

    These numbers also ignore the fact that there are many, probably millions, of older people who need to get back in the workforce, but cannot.

    And they may also ignore the fact that hundreds of thousands of new job-seekers enter the workforce every month. Teenagers do become adults after all.

    True unemployment is closer to 20% than 10%. It may be over 20%.

    • jobeth says:

      My husband is self employed by escorting wide loads over the road. He has been working for a company that makes mobile vacation homes…short trailers meant to be kept in on place. He hasn’t worked in 3 months. They aren’t getting the orders and so he doesn’t get the work.

      He isn’t on any unemployment list…There must be many more who were self employed but unable to work.

      In our case we are fortunate that we are both retired and have other means of support.

      God help the young families…like the young man I met the other day at Booksamillion who has gotten only 11 hours this week and is trying to support a wife and baby.

      He stood right in front of me (a customer) and begged his boss for more hours. He was that desparate to try to get hours when he saw an opportunity.

      So he has a job…but actually very much underemplyed. Not much better.

  5. marinetbryant says:

    ” It’s like a general saying, “The army’s casualty rate this month went down slightly from last month, but then one of our divisions has deserted.” That would not be a military force “pointed in the right direction” with the worst behind it. ”

    By Lee Cary at American Thinker.


  6. Rusty Shackleford says:

    White House still warns of 10 percent jobless rate

    By BEN FELLER, Associated Press Writer Ben Feller, Associated Press Writer – Fri Aug 7, 2:47 pm ET

    WASHINGTON – President Barack Obama on Friday welcomed a dip in unemployment as evidence “the worst may be behind us” with the recession well into its second year. Earlier, however, the White House said that the president still expects unemployment to hit 10 percent sometime later this year.

    Full article: http://news.yahoo.com/s/ap/us_economy_obama;_ylc=X3oDMTI1NzZyc3Q3BFJfYWlkAwRSX2RtbgN5YWhvby5jb20EUl9maWQDYmRhMGMzMzU0NTFiYmY2YjY0Y2Q0MWRlYjBiYWRlNDYEUl9sdHADMQ–

    Blammo says, “”We can’t afford to return an economy based on inflated returns and maxed-out credit cards…”

    Hm…. Kinda like he did before he got his big book deal money. But…”Do as I SAY….not as I DO”

    Well, dang, that just licks all the red off my candy. Trust those AP bastions of truth. You’ll always get the straight dope from the straight dopes.

  7. MinnesotaRush says:

    Doctor o-blah-blah to patient: “Good news!!! You’ve got 3 months to live!!!”

    Patient: “Good news!?!? Good news!?!? What’s the bad news?”

    Dr o-blah-blah: “I shudda told you 89 days ago.”

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