July 3, 2014

How Long Will Unemployment Shrink?

Cautiously optimistic.

Hiring was up in June, according to the employment numbers released by the Bureau of Labor Statistics. The headline unemployment rate dropped to 6.1% last month from May’s 6.3%. A breakdown of the report shows the number of people who could only find part-time work essentially flat-lined since last June at 2.6 million workers. However, the number of discouraged workers – the unemployed who gave up the job search – shrank to 676,000 people and the number of people not in the labor force grew to 92.1 million, an increase of 2.3 million from last year. As the nation moves into the summer months, the teen unemployment rate jumped to 21%. CBS News is cautiously optimistic: More paychecks means more money is flowing in the economy, which might make for some second quarter growth. But according to Merrill Matthews at Forbes, most Americans receive some kind of dole from the government, which spells long-term trouble for a nation that has pulled itself up by its bootstraps in the past. More…

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