In a recent speech, Bernanke claims that although there has been a recent decline in unemployment, this trend will not continue unless the economy grows more quickly. He shared rates giving evidence that a large share of the unemployed have not had jobs for six months or more. Roughly 40 percent of the unemployed fall into this category, according
to government statistics, compared to 25 percent after other recent
recessions. So unless our economy begins to strengthen more rapidly, the recent trends of lower unemployment will not continue.
www.nytimes.com/2012/03/27/business/bernanke-warns-on-weak-job-market.html
2 comments:
After reading this article the reader can understand how important it is to try and find a job immediately after being fired/laid off. It stated that employers prefer people who have only been employed for a short period of time compared to longer time. The longer your unemployed the harder it will be to find a job and less motivated you will be.
The other thing that I am curious about and this article does not cover is the people leaving the labor force. Clearly there has been advancements in the job market, but does the decline in unemployment really show the whole picture? Probably not. I would assume there are discouraged workers, especially if more than 40% of the unemployed have been unemployed for 6 months or more. I am curious to know what industries are the ones that are hurting the most. This could shed light on why people are unemployed for such long periods of time.
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