Monday, May 9, 2011

Payrolls Show Strong Growth but Jobless Rate Rises

Unemployment ratescontinue to rise while the pay rate and number of jobs available increase. This is showing signs of a lagging indicator; people are seeing older unemployment rates and are figuring there is no chance to find a job, while indeed there are plenty of new jobs available everyday. Motoko Rich, the writer of the article stated that they major worry for the Labor Department is that unemployment insurance claims are still rising. Leaving economists to question what the problem is have unemployed Americans just given up? Or are the available jobs not what they are looking for. A big factor coming into play is the rising gas prices; it is difficult to drive around looking for a job when they know that gas is at about $4.00 a gallon. The job market right now is a huge lagging indicator though, economists make note that the job market right now might be seen as bad, but it isn’t as bad as it seems. Along with the number of jobs available, they pay rate has increase by three cents, but the hours worked is still a little flat at about 35 hours per week on average. It doesn’t mean we are out of the woods completely but it is an “out of the woods report.” So there is a light at the end of this tunnel of the great recession in the job market.

-Haley M

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