Underemployment rate hits 16.4% in May

[jeffrey]

Employers throttled back on layoffs in May and cut the fewest jobs in any month since the financial crisis erupted last fall — raising the brightest hope yet that an economic recovery will take hold later this year.

But with companies still reluctant to hire, the nation's jobless rate rose to a quarter-century high of 9.4 percent, and it likely will keep rising into 2010, possibly within striking distance of its post-World War II peak of 10.8 percent...

Including laid-off workers who have given up looking for new jobs or have settled for part-time work, the so-called underemployment rate would be 16.4 percent in May, the highest on record dating to 1994...

US loses just 345,000 jobs in May, raising hopes - Yahoo! News

[poundwise]

Informative article; thanks for posting this Jeffrey. I have to say that I think the choice for thread title isn't the best as it focuses on the negative, while the actual headline and the facts expressed in the article are largely positive.


US loses just 345,000 jobs in May, raising hopes

Employers throttled back on layoffs in May and cut the fewest jobs in any month since the financial crisis erupted last fall — raising the brightest hope yet that an economic recovery will take hold later this year."

...

The light at the end of the tunnel just got a lot brighter," said Nigel Gault, chief U.S. economist at IHS Global Insight.

...

The job losses was the fewest since September and the fourth straight month in which the pace of layoffs slowed.

...

"This tide is turning," said Richard Yamarone, economist at Argus Research. "We expect this trend of slower job loss to continue throughout the year."

...

...evidence is mounting that the recession is letting up, with fresh signs emerging earlier this week. The number of people drawing continuing unemployment benefits dipped for the first time in 20 weeks, and first-time claims also fell. Builders are boosting spending on construction projects, and home sales are somewhat firmer.

[jeffrey]

Originally Posted by poundwise

Informative article; thanks for posting this Jeffrey. I have to say that I think the choice for thread title isn't the best as it focuses on the negative, while the actual headline and the facts expressed in the article are largely positive.

Criticism taken -- I don't like the unemployment % because the government has changed who is included and not over the years so that it is impossible to really compare to previous recessions. It seems to me that the "underemployment" number used to be a lot closer to what we called "unemployed" and that is why that number stuck out when I read the article.

[Bernardcraig20]

Knowing the current situation of our economy is very crucial. We have to be vigilant as to secure jobs. I hope for a very soon recovery from recession.

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Gold Coins

[cptacek]

Poundwise, I respectfully disagree. You can't squeeze blood from a turnip. It may be that employers have cut back as much as possible already and still keep their businesses going.

If you've already cut the 25 people you were holding in reserve so you could lay them off first without impacting production, and then laid off another round, maybe your 10 R&D people + some office staff.
The business owners start putting in 16 hour days to cover, and you simply have to cut a few more people in order to keep afloat so you cut 2 more last month, does that mean the business is better off because the first time they cut 25 and last month they cut 2? No. It means they are about to bleed to death and the next cut may be the entire remaining work force.