Permanent Article Link Here:
http://www.usatoday.com/story/money/business/2014/01/10/unemployment-rate-is-still-far-from-normal/4411359/
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Although the recent times have seen many great strides in terms of the recovery of the economy in the United States, the figures of growth are rather poor when compared to the recent past. From 1995 to August of 2008, when the economy was generally prospering in most areas, unemployment rates never rose above six percent, and job growth was very large. Since the late 2000's, the economy has been recovering from a recession, and recently, unemployment rates, which had approached ten percent a few years ago, has seen an upturn as well. Unfortunately, the current rates and figures are very poor when compared to that aforementioned period between 1995 and 2008. Experts suggest that a very strong and successful economy should be functioning at around a five percent unemployment rate like what was seen during that period. Today, although the unemployment rate has greatly decreased, it is also still around seven percent, which means it has a long way to go before widespread consideration of things being back to "normal" can be suggested.
Personally, I don't think it is completely fair to compare our current economic situation to the times before the recession. First of all, international affairs, government officials, and all of those other factors from then are not at all the same as they are today. Now, the economy has brand new factors to deal with every day that were not seen ten or more years ago. And, chances are, in about twenty years or so there could be people trying to compare their situation to ours, and it simply isn't fair or justified. Sure, the unemployment rate is close to two percent higher than it was before, but the population is also nearly twenty percent larger than it was in 1995. This means that there are nearly fifty million people that need to be accounted for, and it's possible that there are just more people willing to work than their are jobs, regardless of any economic situation.
Sunday, January 12, 2014
US job growth fell sharply in December- BBC.co.uk
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Seeing the job growth rate take such a dramatic dive in December makes the condition of the American economy very difficult to figure out. The previous months had seen such a promising incline, with job creation going well, unemployment falling, and more. The negative momentum going into this new year is a bit unsettling, and hopefully the figure of unemployment can start to decrease again, the job growth can rise again, and the labor force can continue to grow again as well. If fewer people are motivated to work, more jobs must be created to increase the labor force, and make all of those explained factors move into the right direction as well. Nonetheless, the economy has seen great overall improvements since the recession at the end of the last decade, and hopefully improvements can continue to be made for the future.
Annotations:
While the previous months saw the unemployment in the United States fall to a five-year low of 6.7 percent, the job growth rate told a completely reversed story when it came to the overall growth of the country in December. In the previous months, the average number of created in the country was at approximately 214 thousand per month. In December, this rate fell significantly, to a pedestrian 74 thousand created jobs, which was barely a third of the averages from the previous months. Additionally, reports published have also shown that the amount of discouraged workers (people who have given up the search for a job after a long time of looking without luck) has increased as well. A third figure, the American labor force participation rate, which includes people working and those looking for work, has decreased to 62.8 percent. This is close to the lowest this number has been in the last thirty five years. Surprisingly, in contrast to these official reports, economists and other professionals expect economic improvement in 2014. With a projected growth of about three percent, this would be a large increase from 2013, which saw an economic growth rate of approximately 1.7 percent. One factor that could influence this is the change at the top of the Federal Reserve. Current chairperson, Ben Bernake, is to be replaced by Janet Yellen on February 1st, leading to inquiries as to how the American economy will fare after the change.
JOB GROWTH RATES IN THE UNITED STATES IN 2013 (IN THOUSANDS)
JOB GROWTH RATES IN THE UNITED STATES IN 2013 (IN THOUSANDS)
Seeing the job growth rate take such a dramatic dive in December makes the condition of the American economy very difficult to figure out. The previous months had seen such a promising incline, with job creation going well, unemployment falling, and more. The negative momentum going into this new year is a bit unsettling, and hopefully the figure of unemployment can start to decrease again, the job growth can rise again, and the labor force can continue to grow again as well. If fewer people are motivated to work, more jobs must be created to increase the labor force, and make all of those explained factors move into the right direction as well. Nonetheless, the economy has seen great overall improvements since the recession at the end of the last decade, and hopefully improvements can continue to be made for the future.
Friday, December 13, 2013
Expiring jobless benefits to lower U.S. unemployment rate- Reuters.com
Permanent Article Link Here:
http://www.reuters.com/article/2013/12/03/usa-economy-joblessbenefits-idUSL2N0JI16O20131203
Annotations:
Starting in early 2014, recipients of long-term unemployment benefits will not longer receive such benefits, and the change is predicted to possibly lower the national unemployment rate by a good amount. Because over one million people who currently receive these benefits, when they no longer can, they will either have to take jobs that they would not have previously desired, or be removed from the labor force completely. Either way, this change is bound to reduce the unemployment rate because almost all of these people will no longer be considered unemployed. The result would be a decrease in the rate by as much as a half of a percentage point. (NOTE: in my other blog post, it was reported that the rate fell to seven percent, after this article was published.) Either way, unemployment could be prepared to drop below seven percent for the first time in nearly six years.
Personally, I believe it is good that long-term unemployment benefits are being scaled back. When a person is taking advantage of long-term unemployment benefits, it frequently means that they are either not willing to find work, or are simply not motivated to find work. Either way, they do not deserve benefits for doing nothing at all. The point of having unemployment benefits is to get a person by until they can find a job, not to become their sustainable income for a long period of time. Hopefully this starts to motivate more people to want to work so that the total amount of unemployment benefits being distributed by the government can be reduced as well.
http://www.reuters.com/article/2013/12/03/usa-economy-joblessbenefits-idUSL2N0JI16O20131203
Annotations:
Starting in early 2014, recipients of long-term unemployment benefits will not longer receive such benefits, and the change is predicted to possibly lower the national unemployment rate by a good amount. Because over one million people who currently receive these benefits, when they no longer can, they will either have to take jobs that they would not have previously desired, or be removed from the labor force completely. Either way, this change is bound to reduce the unemployment rate because almost all of these people will no longer be considered unemployed. The result would be a decrease in the rate by as much as a half of a percentage point. (NOTE: in my other blog post, it was reported that the rate fell to seven percent, after this article was published.) Either way, unemployment could be prepared to drop below seven percent for the first time in nearly six years.
Personally, I believe it is good that long-term unemployment benefits are being scaled back. When a person is taking advantage of long-term unemployment benefits, it frequently means that they are either not willing to find work, or are simply not motivated to find work. Either way, they do not deserve benefits for doing nothing at all. The point of having unemployment benefits is to get a person by until they can find a job, not to become their sustainable income for a long period of time. Hopefully this starts to motivate more people to want to work so that the total amount of unemployment benefits being distributed by the government can be reduced as well.
U.S. unemployment rate drops to 7%, lowest since 2008- LATimes.com
Permanent Article Link Here:
http://www.latimes.com/business/la-fi-jobs-20131207,0,5416221.story#axzz2nN5Ohxoz
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Over the last month or so, there have been as many as 203 thousand new jobs added to the workforce in the United States, dropping the unemployment rate to seven percent. The jobs that were added were all in non-farming work, and mostly consisted of higher-paying positions within the national labor force. The seven percent rate makes unemployment drop to its lowest rate since 2008, and also brings optimism due to the government implications this holds. With unemployment on the fall, economic recovery shows to be on a track back towards success, and the government now moves closer to easing its stimulus efforts as the country begins to function better with a lesser need for them.
The information presented here gives a very optimistic look for the near future for the United States' economy. As unemployment is scaled back, the economy begins to gain steam, thus making the overall condition of the country improve economically and socially. Hopefully this success continues, and if it does, the United States could be approaching a time of general prosperity that was seen in times like the 1920's and 1990's.
http://www.latimes.com/business/la-fi-jobs-20131207,0,5416221.story#axzz2nN5Ohxoz
Annotations:
Over the last month or so, there have been as many as 203 thousand new jobs added to the workforce in the United States, dropping the unemployment rate to seven percent. The jobs that were added were all in non-farming work, and mostly consisted of higher-paying positions within the national labor force. The seven percent rate makes unemployment drop to its lowest rate since 2008, and also brings optimism due to the government implications this holds. With unemployment on the fall, economic recovery shows to be on a track back towards success, and the government now moves closer to easing its stimulus efforts as the country begins to function better with a lesser need for them.
The information presented here gives a very optimistic look for the near future for the United States' economy. As unemployment is scaled back, the economy begins to gain steam, thus making the overall condition of the country improve economically and socially. Hopefully this success continues, and if it does, the United States could be approaching a time of general prosperity that was seen in times like the 1920's and 1990's.
Thursday, November 21, 2013
U.S. Dollar Decline- November 4, 2013 Update- EconomicGreenfield.com
Permanent Article Link Here:
http://www.economicgreenfield.com/2013/11/04/u-s-dollar-decline-november-4-2013-update/
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The chart shown above is a long-term look at how the dollar has changed in value over the past thirty years. As the trends show, the dollar has been very inconsistent, but has trended down in value. The red line shows the best fit for the overall trend of the value, and shows how the value of the dollar has greatly declined since the eighties. Overall, the dollar is facing a major issue, and there is a lot of work that needs to be done to improve its condition.
What this graph shows is that as time has went on, the value of the dollar has fallen, while very little proactive action has been taken to improve its condition. While it is not reasonable to think that the dollar could get back to its value that was present around 1985 or so, the downward trend is what really needs to be changed. If the financial and economic world can begin to put some effort into place and make decisions that could benefit the overall fate of the dollar, it could begin to stabilize and even trend back upwards again. Otherwise, the dollar may very likely continue to slide and fall in value. This would consequently have an even more significant international impact, and could alter the success of the international financial and economic fields.
http://www.economicgreenfield.com/2013/11/04/u-s-dollar-decline-november-4-2013-update/
Annotations:
The chart shown above is a long-term look at how the dollar has changed in value over the past thirty years. As the trends show, the dollar has been very inconsistent, but has trended down in value. The red line shows the best fit for the overall trend of the value, and shows how the value of the dollar has greatly declined since the eighties. Overall, the dollar is facing a major issue, and there is a lot of work that needs to be done to improve its condition.
What this graph shows is that as time has went on, the value of the dollar has fallen, while very little proactive action has been taken to improve its condition. While it is not reasonable to think that the dollar could get back to its value that was present around 1985 or so, the downward trend is what really needs to be changed. If the financial and economic world can begin to put some effort into place and make decisions that could benefit the overall fate of the dollar, it could begin to stabilize and even trend back upwards again. Otherwise, the dollar may very likely continue to slide and fall in value. This would consequently have an even more significant international impact, and could alter the success of the international financial and economic fields.
Why the dollar has to decline in the long term- theHinduBusinessLine.com
Permanent Article Link Here:
http://www.thehindubusinessline.com/features/investment-world/why-the-dollar-has-to-decline-in-the-long-term/article5251686.ece
Annotations:
Throughout the last few decades, the value of the dollar has slowly decreased as the national debt has increased. In recent years, the value decrease has become more rapid, and the national debt has skyrocketed to very alarming levels. This has affected international markets as much as it has affected the national economy. For example, the Indian rupee has had a very significant decline in value in the last few years as well, which has been greatly theorized to be due to the decline of the dollar in some way. The reasons for the decline of the dollar are abundant, but one of the biggest began around 2008. During the financial crisis of that year, investors, domestic and abroad, became apprehensive and less likely to trade with the dollar. However, because the dollar is the international standard for trading, its financial woes have negatively impacted international markets as well.
The issues that the dollar has faced in the recent years are very worrisome, but the issue has taken on a new factor. Because the decline of the dollar is now becoming more and more negative in other international trading markets, it shows that the United States is not the only country facing issues with currency. This is an issue with international implications. If the trends of the economic and financial worlds allow for the decline to continue, there are many countries around the world that will feel the consequences. The problem cannot be taken care of quickly, but if there is no effort put forward towards a gradual increase in the viability and overall value of the dollar, the world as a whole could be in a large amount of trouble.
http://www.thehindubusinessline.com/features/investment-world/why-the-dollar-has-to-decline-in-the-long-term/article5251686.ece
Annotations:
Throughout the last few decades, the value of the dollar has slowly decreased as the national debt has increased. In recent years, the value decrease has become more rapid, and the national debt has skyrocketed to very alarming levels. This has affected international markets as much as it has affected the national economy. For example, the Indian rupee has had a very significant decline in value in the last few years as well, which has been greatly theorized to be due to the decline of the dollar in some way. The reasons for the decline of the dollar are abundant, but one of the biggest began around 2008. During the financial crisis of that year, investors, domestic and abroad, became apprehensive and less likely to trade with the dollar. However, because the dollar is the international standard for trading, its financial woes have negatively impacted international markets as well.
The issues that the dollar has faced in the recent years are very worrisome, but the issue has taken on a new factor. Because the decline of the dollar is now becoming more and more negative in other international trading markets, it shows that the United States is not the only country facing issues with currency. This is an issue with international implications. If the trends of the economic and financial worlds allow for the decline to continue, there are many countries around the world that will feel the consequences. The problem cannot be taken care of quickly, but if there is no effort put forward towards a gradual increase in the viability and overall value of the dollar, the world as a whole could be in a large amount of trouble.
Thursday, October 31, 2013
The sun is setting on the U.S. dollar’s global supremacy- Business.FinancialPost.com
Permanent Article Link Here:
http://business.financialpost.com/2013/10/15/us-dollar-supremacy-decline/
Annotations:
In today's world, the U.S. dollar currently serves as the monetary standard when it comes to international trading and business. It is the form of currency that traders and investors alike look to when they desire a secure and credible form of currency with which to use in an international market. However, due to the declining value of the dollar, the days in which this is the standard may be coming to an end. The unpredictability and insecurity of the dollar's future has traders nervous, and looking for a new means of secure currency. Currently, the dollar holds the majority of the world's exchange reserves, along with being responsible for around 80 percent of the world's exchange trading. The only major factor holding back the dethroning of the dollar as the global reserve currency is the lack of a suitable alternative that the market can agree on. Regardless, the dollar is in serious trouble in the international market, and things are getting worse as more time goes by.
The fact that the dollar is being threatened with removal as the global reserve currency and the international standard shows just how bad the current situation is. If this trend continues, it may not be long before the dollar is no longer the international standard for currency, which could plunge the United States into a very unsettling situation. Something needs to be done soon, otherwise, the future will look to be a very humbling time for the United States and the global economy.
http://business.financialpost.com/2013/10/15/us-dollar-supremacy-decline/
Annotations:
In today's world, the U.S. dollar currently serves as the monetary standard when it comes to international trading and business. It is the form of currency that traders and investors alike look to when they desire a secure and credible form of currency with which to use in an international market. However, due to the declining value of the dollar, the days in which this is the standard may be coming to an end. The unpredictability and insecurity of the dollar's future has traders nervous, and looking for a new means of secure currency. Currently, the dollar holds the majority of the world's exchange reserves, along with being responsible for around 80 percent of the world's exchange trading. The only major factor holding back the dethroning of the dollar as the global reserve currency is the lack of a suitable alternative that the market can agree on. Regardless, the dollar is in serious trouble in the international market, and things are getting worse as more time goes by.
The fact that the dollar is being threatened with removal as the global reserve currency and the international standard shows just how bad the current situation is. If this trend continues, it may not be long before the dollar is no longer the international standard for currency, which could plunge the United States into a very unsettling situation. Something needs to be done soon, otherwise, the future will look to be a very humbling time for the United States and the global economy.
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