Unemployment, Lay-offs, And Our Economy: What To Believe?
9/27/2010

A Deeper Look...

...by Becky Mease

With statistics, polls, and financial experts all painting the picture of a new and improved economic front, why are so many companies continuing to lay-off their employees?  As the number of unemployed workers increase, it has to make a person question the validity of information that pertains to our nations “economic rally.”  FinanceJobz.com has found some interesting information that may prove to be helpful for you in establishing an outlook for future employment.      

On November 6th of this year, the U.S. Department of Labor released the new staggering unemployment rate at being 10.2%.  For those of us who weren’t around in that time period, this is just a blink shy from the unemployment numbers of the Great Depression.  Yet reports out there still dare to make claims that our economy is rebounding.  I have to ask how can this be?  I was always under the assumption that employment and economic standings were in a direct link to each other.  That one directly influenced the other?  And if that notion is truly the case, then are we being lied to about the economy improving?  So many questions…. So little the number of sources to find the real answers; and then what or who should you believe.

Here is what I discovered, and however confusing it may appear, I hope it to be true.  As I understand it, even though it is said that the economy is showing improvement, it will take time to trickle down to effect labor standings in general.  Businesses, employers, and such are not expected to begin hiring for months after the government releases its economic and employment reports.  And after experiencing how ineffective Obama’s stimulus was on the economy, many businesses are hesitant to believe in the strength and endurance of the recovery.  So yes, there is an improvement in the economy- sluggish and minute as it may be-but it still exists.  Future hiring potential should then be uncertain, and taken with a grain of salt.  It is expected to take several years for our nation to get back on its feet both economically, and employment-wise.

So, why then do we hear all the “hub-bub” of big, steady economic and employment improvements when that doesn’t seem to be the case?  Every week more and more folks receive pink slips that send them to the unemployment lines, with the anticipatory knowledge of being there for quite some time as jobs are deleted from businesses and companies fold under the financial pressures.  Keith Hall, Commissioner for Bureau of Labor Statistics stated, “Job losses have averaged 188,000 over the past 3 months.  The declines are much smaller and less widespread than they were last fall and winter.  Nevertheless, some industries are still experiencing notable employment declines.  In October, construction lost 62,000 jobs, manufacturing 61,000, and retail trade 40,000.”  To me, these numbers still seem significant- even if they are an improvement from last year.  And shouldn’t they be markedly lower than what they are if it’s a year later?  

You will find “experts” out there who will report that there was indeed no rise in unemployment and the economy is steadfastly improving.  They claim that the unemployment rate has remained the same with at least 80,000 jobs created or are available to be filled as to date and rising- even higher numbers exist for those that require a college degree.  They say there are factors such as seasonal workers that should or shouldn’t have been considered into the figures that the government released.  They truly believe the job recession is ending and believe better days are relatively close.  If you’re a person who has experienced employment lay-off and unsuccessful job seeking, you’ll have a hard time swallowing what they tend to sell.

It’s hard to define an exact answer to an ever growing problem with our economy and employment predicaments.  Discussion of a second stimulus package is in the works- however, if it didn’t work the first time then how will we endure the second?  Being under the stress of unemployment makes folks look and believe in solutions to solve their problem quickly, and a “get-rich-quick” scheme is not what we need.  I’m unsure of what the answer or answers may be.  I’m not even sure what to believe half the time, but what I do believe is that there are better days with better employment opportunities somewhere in our future...there has to be.  How or when we’ll get there?  I just don’t know.