The mainstream media is starting to grasp the picture

Today’s WSJ ran a thought piece today entitled, “Jobs Picture Clouded by Long-Term Unemployed” by Gerald F. Seib.  The gist of the story is that the unemployment picture is skewed by the number of long-term unemployed, many of whom have stopped looking for work.  The article quotes Bureau of Labor Statistics reports of the number of long-term unemployed of around 6 million.  This figure is double what it was one year ago.  In fact, 40% of the unemployed are in this long-term category – a shocking figure.  In short, this article is echoing and supporting statements I have been making on the blog for months.

One of the problems with the current recession is that the 9.7% unemployment rate only counts workers that are still looking for work.  Job seekers who have given up are not counted in the data.  However, if the unemployment situation starts to improve, many previously out of work people who had stopped looking, will start looking once again.  That means that they will then re-enter the data pool that determines the unemployment rate.  Because the unemployment rate is more than just mere data, and is also a psychological symbol of the economy’s health, if it remains fixed between 9-10% it will continue to sap the morale of the U.S. economy.  Not good.

Let’s hope that the difficult labor market starts to improve and soon for the sake of all of us.

Jason