Unemployment Drops; Why Isn’t Everyone Jumping For Joy?
This morning it was announced that unemployment has finally decided to go in the direction we’re all hoping for, as it dropped from 10.2% at the end of October to 10% at the end of November. There were fewer jobs lost in November, which helped contribute to the figure. It’s the best report in more than 2 years.
Now, it did come across in all my news alerts, which means as a headline it was pretty big news. But every news story you read certainly looks fairly depressing still. Even President Obama came out and said that the news was encouraging, but, and I quote, “good trends don’t pay the rent.”
And there’s the issue. In the last two years, the country has lost around 7.2 million jobs. In that same period of time, the jobs that many people have been able to obtain haven’t come close to paying what people were getting paid when they lost their original jobs. Foreclosures are still going up because people have less money to spend. Bankruptcies are going up because it’s harder to pay bills.
The overall unemployment figures don’t talk about people who are now off unemployment because they’ve exhausted their benefits. They don’t talk about communities like Anderson, SC, where the unemployment rate is around 30%. In Detroit, the unemployment rate is 16.7% Congress had to pass an extension of unemployment benefits so some people could continue getting at least their little piece of change in a tough economy.
Of course, there’s still the worry about commercial real estate crashing and the possibility of more than 4 million more jobs being lost, and that’s a low estimate. I hate being the guy bringing the worries that we’re not quite there yet as far as a turnaround goes, but those are the facts, the things we have to overcome at some point if we’re going to be able to truthfully say we’re on the path towards recovery.
No one will be more pleased that myself when that comes around.