Unemployment Down to 5.9% Lowest Since July 2008

0

In the last month, by adding 248,000 new jobs for Americans, the unemployment rate dropped from 6.1 to 5.9 percent, marking a slow, but steady recovery from the financial crisis of 2007-08.

Many people have vilified Obama for his inability to restore the declining labor market, but slow auspicious steps like these give not only the president but Democrats some edge over Republicans in the coming mid-term elections. But while these steps show progress, the trend of people dropping out of the work force and flat wages have come just as often.

This is a pleasant surprise for many Americans who were disappointed with the 180,000 new jobs that were added to the market in August. Aberration, anomaly and outlier have been used to describe this month's character by its languish activity in helping the labor market.

Many economists were ambivalent as to whether the unemployment rate would drop to 5% in the next decade because of such slow progress. August was an inaccurate augur of a 6.1% unemployment rate but September proved to be much more prosperous then the consensus prediction of 215,000.

Though the process has seemed tedious and drawn out to the public, it is actually the strongest job recovery period in the history of the U.S. The Great Recession that had skyrocketed the rate to around 10% in October 2009, may be beginning its conclusion with September continuing the 48th month of job growth recovery.

But, accompanied by a report of 97,000 people dropping out of the labor force, economists say that there is still a cloud of obscurities that blurs this promising picture of substantial job growth. Republicans have been quick to jump on the argument that the unemployment rate dropped so significantly partly due to this large fall in the labor force.

Unemployment workers dissuaded by the paucity of jobs and flat wages have been the weakness of recovery and the negative aspect of this report.

With wages frozen because of the slack in the labor market, the question that many Americans workers will be asking is how long and how low will the rate have to decrease in order to increase wages considerably. A majority of the jobs gained in September are low-wage jobs and their stagnancy is perturbing, though not as much as the booming increase in annual earnings of the richest 1% of Americans simultaneously.   

Share.

About Author

%d bloggers like this: