Sunday, October 11, 2009

Unemployment Numbers Can be Misleading

The reports on the number of jobless can be misleading. Example: There are those, who once jobless, find new employment within reasonable time. Then, there are those with in-between jobs that may be just temporary or part time. And others during a recession, who go off for work in totally different areas, and for lesser than conventional work hours.

The number of weeks someone is unemployed is an important statistic. While many unemployed give up seeking work after a while and if able, retire earlier under Social Security at reduced benefits. So you see hidden variables.

New job creation figures are important. I also look to see the type of jobs created. Government work is not creative. It does not have a multiplier effect as do private industry jobs.

So be careful how politicos and the media color unemployment statistics,

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