Monday, April 9, 2012

Poor Reporting on Jobs Numbers Leads to Market Crash

Reality check:  While the number of new jobs added was lower in March than expected, there was a massive drop in those underemployed.  The underemployed either work at a job below their level of training, or work part time and wish to work full time.

120,000 new jobs added when 200,000 was expected.

But, there was a drop of 447,000 from the position of being underemployed.
The sixth-biggest monthly drop on record.

Aka.  More people who were working part time either got more hours and now work full time, or got a better job that uses their skills fully.

So - if looking at one number - it doesn't look phenomenal.

If looking at the entire report I see conditions where the slack in the labor force took a massive leap in the right direction this month.

One criticism of this recovery has been that too many jobs added are low paying jobs.

Well, a reduction in the underemployment is people moving towards better paying jobs that use their skills.

We took a leap in the right direction and somehow people called it failure.

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