The United States employment situation is definitely an interesting subject. If you’re interested in how the United States economy is doing, then you should be interested in the contents of this page.
Why? Because this is the page where I will be covering, commenting and sharing my opinions on the the US employment situation. The United States is the world’s biggest economy, so the world, including myself, watches these employment numbers very carefully. Now you can too. Don’t forget, if you have an opinion regarding the employment numbers of the US, make sure to comment.
Table of Contents
The United States added 115,000 jobs in the month of April 2012. The unemployment rate was little changed at 8.1 percent from 8.2 percent in March 2012. Job growth is reported to be broad based throughout the private sector. The private sector grew by 130,000. Government employment declined by 15,000.
The United States added 243,000 jobs in the month of January 2012. The unemployment rate declined to 8.3 percent from 8.5 percent in December 2011. Job growth is reported to be broad based throughout the private sector. The private sector grew by 257,000. Government employment is little changed.
The United States’ employment situation during the November 2010 was very disappointing. Overall non-farm payrolls increased only by 39,000. Due to the low rate of job creation, the unemployment rate increased to 9.8 percent from 9.6 percent in October 2010. Not good at all. Hopefully, the quantitative easing 2 policy implemented by the Federal Reserve will have a positive effect on employment in the United States.
The low growth in the labor market could be a sign that employers are still nervous about the economic situation of the United States (which is a sign of low producer confidence) and a sign of a stalling economy. What adds to the shock value of this report is that it is holiday season and job creation is still on the low side.
Ben Bernanke Discusses the U.S. Labor Market
The video below features Ben Benarake, Chairman of the Federal Reserve, on a CBS News program called ’60 Minutes’ talking about the United States employment situation, among other things.
I happen to disagree with Ben Bernanke when he says that the Federal Reserve isn’t increasing the money supply of the United States. Though the FED may not be ‘printing money’, it is creating electronic money. Whenever you create money and use that created money to buy securities, you are increasing the money supply.
Ben stated that it is possible that the Federal Reserve could increase the size of the quantitative easing policy above $600 billion dollars. Those are very big words and have huge implications for the financial markets. He also revealed that it takes about 2.5 percent growth to keep the unemployment rate stable.
During the month of September 2010, the U.S. non-farm payrolls decreased by 96,000, keeping the unemployment rate a stable, but high 9.6 percent according to the Bureau of Labor Statistics.
Government payrolls decreased by 159,000 and the private sector payrolls increased by 64,000. Though the U.S. lost 96,000 jobs during the month of September 2010, the fact that the private sector continues to pack on jobs is encouraging. Unfortunately, it isn’t enough.
The U.S. economy needs to be adding a lot more to its payrolls consistently in order to keep the unemployment rate stable. Low to no growth in payrolls will still mean that the number of unemployed citizens in the U.S. will be stagnate or increase.