|Posted by G on April 4, 2011 at 12:22 PM|
It was reported that Businesses created 216,000 jobs last month and the jobless rate fell to 8.8 percent.
NOTE: The economy has recovered a fraction of the more than 8 million jobs lost in the recession. Economists say sustained job growth of between 250,000 and 300,000 a month is needed to have a sizable impact on the millions of unemployed and under employed. According to the Economic Policy Institute, it will now take the creation of 285,000 new jobs per month every month for the next five years to get this country back to its pre-recession unemployment numbers.
Millan Mulraine, senior macro strategist at TD Securities in New York said, “Even if we have an acceleration in the pace of job growth, there still remains significant slack in the labor market,” and that “Given the high levels of unemployment and the fact that the duration of unemployment is still unacceptably high, the Fed will remain on the sidelines at least for the next year before they start contemplating tightening monetary policy explicitly.”
The numbers... 216,000 jobs created in one full month yet 388,000 newly unemployed Americans applied for first time unemployment insurance in just one week, the week ending March 26. The pace of job growth hasn't been strong enough to make a dent in the large pool of long-term jobless workers who have left the workforce. Some have gone back to school; some have given up looking, others have "retired" hoping to get by on their savings. Now As job prospects supposedly improve, those people typically begin looking again. But, according to the Bureau of labor statistics data, that hasn't happened yet: the so-called "participation rate" remained flat in March.
Diane Swonk, chief economist at Mesirow Financial, "Where are the people throwing their hat back in the ring?" "Long term unemployment is over six million. That's really disturbing. They're running out of unemployment insurance and tapping into disability, welfare, applying for food stamps. It's tough stuff."
Looking at the actual DOL report itself it reads, “The number of unemployed persons and the unemployment rate changed little in March. The labor force was also little changed over the month.”
This report presents statistics from two major surveys, the Current Population Survey (household survey) and the Current Employment Statistics survey (establishment survey).The Current Population Survey is a sample survey of about 60,000 households conducted by the U.S. Census Bureau for the U.S. Bureau of Labor Statistics. and The Current Employment Statistics sample includes about 140,000 businesses and government agencies.
Two hundred thousand people are surveyed to come up with a number that is supposed to accurately represent a country with a resident population of 311,093,397.
By its own admission, the reliability of the DOL “estimates” and that word “estimates” is their word not mine, the reliability of the DOL “estimates” as relates to the current employment statistics survey is plus or minus 100,000.1.