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Sunday, September 20, 2009

The unemployment level: What does it reveal?

The most recent unemployment data was looked at as an improvement compared to 700 plus thousand jobs lost in one month about eight months ago. It is an improvement in the sense that the unemployment index for the most recent month was only about 200 plus thousand lost jobs. What this tells is there are still many people being driven out of jobs(who knows why) but not as many as it has been. Well, the wise leaders have concluded they don't see this as an improvement.

If we look at things in depth, the fact of the matter is not always associated with the economic decline or growth. It has been evident that employees can sometimes lose their jobs for a totally unrelated reasons. The realities on the ground are witnessing another historic development that is being ignored because of the potential for a negative outcome. The economy of any country has its own limits as to how many of its citizens can successfully participate in a job market. It is becoming a period of decision making. There is unavoidable sector of the population that is not fit for average typical job requirements put forward by companies. So 10, 12, 15, even 20% unemployment figures may have to be acceptable to get the economy going smooth again. The question is, what is to be done with those who, for some reason, are not capable of getting jobs that they think they are fit for. Whatever the government's hopes are to predict the positive growth of the economy, the job data may not necessary reflect the growth. The companies will not sway from their strict internal policies whatever the government says.

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