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A Partial Story

March 6, 2013 – 6:12 pm

jobsThe official jobs report will be out on Friday which will tell us the number of new jobs created in February and the resultant unemployment rate. The official number is of course not telling the whole story as many of the unemployed give up trying to find work and when that happens the government no longer counts them as unemployed.

The better way to look at the work force is by comparing the past and present percentage of adults working. Using that number a clearer picture of the pain of unemployment is revealed. 58.7% of the U.S. adult population is working. It has been at this ratio for the last three years and that is close to the lowest level since the
1980s. This means despite the unemployment rate dropping from close to 11% to 7% the job market has not improved much and that is why the general population feels that jobs are hard to come by,

This way of looking at the health of our job market is much better than the unemployment rate but it too has its flaws. For instance, demographics play a roll. The older the population generally means more retirees who don’t work and won’t be working.

Regardless of what numbers you look at our job market is struggling, of that no one disagrees. Let’s hope Friday’s official report gives us a little cheer, but don’t expect much.

Good Trading
Steve Peasley

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