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Job Growth Optimistic Despite Unemployment Increase

The most recent release from the Bureau of Labor Statistics shows a slight increase in unemployment, up to 6.7% from the previous month’s 6.6%. With deeper exploration into this figure there are indicators of an improved economy. Payrolls grew by 175,000 jobs, a large majority of which were in the private sector, outpacing estimates by about 25,000 jobs. This increase is the largest we’ve seen in the last three months, and shows strong improvement from the recent weather-related shocks to the economy. Furthermore, it is presumed that this unemployment increase can be explained away by the decrease of discouraged workers from 837,000 to 755,000. This trend is expected to have a positive effect on economic conditions symbolizing a somewhat improved sense of optimism in the American public and greater trust in labor market conditions. In an economy with over 145 million people employed, this increase in both jobs and labor supply is nothing more than a small step to a more secure and natural rate of unemployment. Still even small progression is better than none at all.




  1. gjeong gjeong

    I do not think that a slight fluctuation in unemployment rate (either increase or decrease) matters that much. What we should focus on is availability of more jobs and higher employment rate. The economy has been recovering pretty well and unemployment rate will eventually (and hopefully) go down. However, my concern is the effects of increase in minimum wage. How will this affect the job market and unemployment rate later?

    • James Dillard James Dillard

      Raising minimum wage notoriously has a negative effect on the job market and employers will begin to cut hours as well as employees on a macro scale. Although, with an economy increasing employment opportunities in the private sector simultaneously, may result in a stagnation of unemployment levels. Increasing the current minimum wage will be healthy for our economy in the long run due to the trends of wages insuffienciently keeping up with inflation levels. If unemployment levels still remain relatively mired around six and a half percent, this should not be an indicator of current policy lacking effectiveness.

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