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Friday, May 7, 2010
Good News Bad News
So just when you think there is good news about the economy, there is bad news, but it is really good news. HuH? Today, an economic report indicated the largest increase in job growth in four years. Another report showed an increase in unemployment. Is this good or bad? It is simple, but complicated economics. When there is a recession, it becomes very difficult to find a job. After a while, many of the unemployed get so discouraged for not finding a job, that they stop looking. These discouraged workers are no longer counted as unemployed. As the economy improves and jobs are created, the discouraged worker who is not looking, starts looking again for work and until he/she finds a job, he/she is again considered unemployed. Isn't it great that positive news makes bad news good and good news bad? I really do love economics. Where are you Americans for reason and truth?
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I think that the person who stopped trying to get a job is still unemployed, even though they aren't considered to be since they stopped looking for work. There's still an increase in job growth which means more people are getting hired. In the end, less people are actually unemployed and unemployment only goes up as a result of more people wanting to find work.
ReplyDeleteMaybe we should just redefine unemployment to make this less paradoxical