Quote:
Originally posted by 123dsa
Number of jobless steadily growing? Maybe you missed the new report from the Fed. Unemployment is down and the economy grew at more than 2% over the last quarter.(3% is the rate of growth at the natural rate of unemployment)
I understand what you're saying about the burden on the states. The problem I see is wasteful spending. "slashing spending" isn't quite accurate either. Spending was just increased by less than originally forecasted.
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You may have misread that. The mortgage sector grew--but rates are rising too high, too fast and the market is projected to become quickly saturated.
The unemployment drop you cited was due to people giving up on looking for work--not because the market grew. Here's a portion of an article explaining it further from today's LA Times:
Jobless Rate Drops to 6.2% in July
The nation's employers continued to cut payrolls in July and more people gave up looking for work and dropped out of the job market, leading the nation's unemployment rate to slip to 6.2%, the Labor Department said today.
Despite recent signs of an economic expansion, the July report showed that the job market remained weak, with payrolls dropping by 44,000 - the sixth monthly decline in a row. Meanwhile, the size of the labor force dropped by 556,000, erasing the previous month's gain as more out-of-work people stopped searching for jobs.
The jobs report surprised economists, many of whom were projecting an increase in payrolls, and disappointed Wall Street. The Dow Jones average ended the day at 9153.97, down 79.83. The Nasdaq dropped 19.43 to 1715.59, while the S&P 500 slipped 10.16 to 980.15.
The unemployment rolls shrank slightly to 9.1 million people as the unemployment rate dipped to 6.2% in July from 6.4% the previous month. But the decline was primarily the result of fewer people actively looking for work or giving up their job search entirely. Those people, described as either marginal or discouraged workers, are not included in unemployment statistics...