Why unemployment is a poor economic indicator

[Jaundice James]

Sure, if someone is unemployed, than they’re certainly in poor economic shape. But that doesn’t mean that, once that person gets a job – or even if 14 million Americans get a job – everything will suddenly be rainbows, lollipops and pink balloons.

When unemployment goes back down we still won’t be out of this mess because the employment culture has changed so much.

I could go on to point out all the people who don’t figure into the unemployment numbers... Instead, I’d like to point out the poor state of employment.



http://corporatecorruptionchronicle.com/2010/08/10/why-unemployment-is-a-poor-economic-indicator/

[phantom power]

1. Interesting point, but I still (personally) favor it over reading GDP entrails exclusively.

For similar reasons: Just because GDP creeps up for a couple quarters doesn't mean people are in good shape, and that goes double when unemployment is 9.5%.

I think U6 going down is a good thing to strive for, although I've had people point out to me that U6 isn't infallible either.

:shrug:

[raccoon]

2. K&R nt