Roll Call: Latest News on Capitol Hill, Congress, Politics and Elections
September 19, 2014

Look to Employment, Not Unemployment, Rates for Signs of Economic Recovery

Binyamin Appelbaum: “Unemployment rates, the most familiar and famous of labor market indicators, are nearing pre-recession lows. But the shares of adults with jobs — or employment rates — look much less healthy.”

“The reason is that the numbers are not quite two sides of a coin. The employment rate counts everyone with a job, while the unemployment rate counts only people actively seeking work. It excludes most people who are unemployed.”

“But after this recession, the middle ground has ballooned as fewer people try to find jobs.”

“As a result, the employment rate has become the more accurate indicator of the nation’s sluggish and perhaps permanently incomplete economic recovery.”

“The slow progress hints at a bleak reality. Most economists do not expect employment rates to rebound completely.”

Ylan Q. Mui of the Washington Post points out that the Fed, “and its penchant for overestimating the strength of the recovery and underestimating employment suggests they could soon be caught in a conundrum: what if economic growth does not take off as they expect, but the jobless rate continues its rapid descent?”

  • YONATAN C

    THE THREE MILLION CURRENT UNEMPLOYED CAN’T SEE A RECOVERY. THERE TOO BUSY BURIED IN DEBT AND FINANCIAL RUIN, THANKS TO THE REPUBLICAN SENATE, AND JOHN BOEHNER. THERE ARE STILL THREE MILLION UNEMPLOYED AMERICANS WHO HAVE BEEN WITHOUT AN UNEMPLOYMENT EXTENSION SINCE LAST DECEMBER. THIS WAS DIRECTLY CAUSED BY THE REPUBLICAN SENATE’S REFUSAL TO PASS THE EMERGENCY UNEMPLOYMENT BENEFIT BILL. THE REPUBLICANS HAVE UTTERLY FAILED THESE UNEMPLOYED FAMILIES, AND DESTINED THEM TO FINANCIAL RUIN AND POVERTY. MANY OF WHOM MAY NEVER RECOVER FROM. THE REPUBLICANS HAVE SHOWN A TOTAL LACK OF COMPASSION AND COMMON DECENCY TOWARDS OUR OWN PEOPLE IN THIS COUNTRY. THEY ARE SHAMEFUL, AND NEED TO BE VOTED FROM OFFICE.

  • Yonatan YONATAN

    Has the government forgotten about the three million unemployed workers, and their families, STILL WITHOUT an extension of unemployment benefits since last December? While Billions of tax payers dollars are sent to the Ukraine in an aid package, more and more of these unemployed continue to sink into financial ruin. How can our government send our sons & daughters off to war, but not help their unemployed loved ones back at home? The republican senate has failed these millions of voters, and their families. These Americans have lost all trust and hope and respect for the government because of this lack of compassion, and common decency.

  • Sebastian Klay

    cxc

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