Unemployment rate update
Date posted: October 18, 2012
There’s been modest improvement in the job market, with both jobs increasing and the jobless rate decreasing slightly. N.C. State University economist Mike Walden provides a snapshot of where we stand.
“Well … last month we had about 100,000 net new jobs created nationally. Now when I say net new, I mean that every month we have some jobs destroyed, some jobs created. So this was a net plus, which is good. We had the headline — what we call headline unemployment rate — fall from 8.2 to 8.1 percent.
“Now as we’ve talked before, there are many issues with that unemployment rate. So let me give you some other rates: If you look at people who are without a job and also include people who are not counted as unemployed in that first rate because they’ve stopped looking for work, so-called discouraged workers, the current unemployment rate based on that definition is 9.6 percent. It is down a full percentage point however from a year ago.
“And then lastly if you include also as unemployed those folks who say they are working but they are working part-time because they can’t find full-time work, that unemployment rate is going to be much higher. It’s 14.7 percent, but it’s also down from a year ago. It’s down 1.5 percentage points.
“So, we’re making progress, but it’s very, very slow progress, and all of these unemployment rates are much higher than anyone would like.”
Category: Economic Perspective