Chris Lau - Seeking Alpha

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Sunday, May 10, 2009

Jobs and Half-Truths

April 2009 Job Report

Some points for consideration:

  • Job losses in February and March turned out to be deeper, according to revised figures
  • Employers cut 681,000 positions in February, 30,000 more than previously reported
  • 699,000 jobs cut in March, more than the 663,000 first reported
  • Unemployment rate climbed to 8.9 percent, the highest since late 1983,
  • Total unemployment: 6.35 million
Source: http://finance.yahoo.com/news/Layoffs-slow-to-539K-in-April-apf-15180898.html

Canada reported a net increase of 10,000 jobs. Amazing? Not really, unfortunately. Many of the unemployed workers decided to be their own boss and to work for themselves.

Conclusion:

Headline numbers tell us that things are less bad, but let us look deeper. Let us look at U6. U6 includes part-time workers who want to be full time. That figure is 15.8%.

U6
"The comprehensive unemployment rate which is referred to as U6 and 
includes part time workers that want full time jobs and discouraged
workers that have stopped looking but will take a job if offered, rose
to 15.8% from 15.6% and 9.2% in April 2008."

Source: The Big Picture by

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