According to an article from nytimes.com, the New York City unemployment rate hit a record high last month, pushing it ahead of the countries. 10.6% was the magic number for NYC, while the country stayed around 10%. Neighboring state New Jersey also announced that they had a jump as well, going to 10.1%. After reading this article I guess I was a bit confused. I’ve heard reports from one place or another that the recession is ending and that things should turn around soon. Yet, I’ve also heard the opposite of that as well. Then I get online and see this article that states just last month New York City has reached its highest unemployment rate in 17 years. The article reads:
Nearly 425,000 city residents were unable to find jobs in December, easily the highest total in the 33 years those records have been kept. The numbers were announced a day after New Jersey officials said that their state’s unemployment rate hit a 33-year high of 10.1 percent in December. New York State’s unemployment rate also rose, to 9 percent from 8.6 percent in November.
“The city’s rate is obviously the most disturbing one in the mix,” said M. Patricia Smith, the state labor commissioner. “What this shows is that the economy is still volatile. People are still nervous about the economy.”
I don’t blame people for being nervous when the unemployment rate is higher than the countries. The article goes on to mention that we shouldn’t be expecting a turnaround anytime soon either. Experts say that unemployment is likely to keep rising and won’t reverse the trend until at least midyear. It’s really like a vicious circle if you think about it. Thousands and thousands of people get laid off of work and lose their source of income, businesses start to lose money because the consumers don’t have any to spend, so what do the businesses do? They have to resort to even more layoffs. I just hope that our country and cities such as New York City can turn things around by the end of 2010.
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This information is very scary to think about and comprehend. Understanding that our country is continuing to decrease financially is something that provokes me to worry about the circumstances that I could one day be involved with. My thought process is whether or not our country will ever really make it fully out of this recession. The unemployment rate and the numbers are extremely shocking.
ReplyDeleteThis post provokes the question: who are these experts? What qualifies them to say they are an expert? Is it the rate of predictions correct over predictions made?
ReplyDeleteAlthough I have not seen their data or heard a lot of explanations as to why the economic downturn will reverse itself in 6 months, I don't believe these researchers. They have been wrong many times, or completely missed the boat. I am just very skeptical. (E)
This is very confusing. Who are we supposed to believe? Which economist is correct? All these theories and predictions all lead back to the fact that Economics is based on assumptions. There is no clear cut answer. But i don't see much evidence in the US and most countries that indicate an improvement in this recession.
ReplyDeleteThis is a clear example of why I am so skeptical when read/watching the news. One news report/economist may say one thing while the another may say the exact opposite thing. Both would have PHd's and may be very highly respected in their fields however, who are we to believe?
ReplyDeleteWith this news it is very worrisome of how our economy will improve. It doesn't seem that we are heading in the right direction yet and we are losing money day by day.
All of these statistics are so volatile. They change all the time, if only by a little. It's hard to keep track of them and put them in order. It's very important to be aware of when certain statistics are published. E
ReplyDeleteThat unemployment keeps rising even while the economy is supposedly recovering makes me ask myself how it is that we measure economic recovery. Those that say we are recovering likely cite growing GDP, or recovery in the stock market. Personally, though, I believe that economic recovery should be determined by the presence of economic improvements in the lives of the general population (such as a decrease in unemployment or a revaluation of the price of homes). While I acknowledge that growth in GDP and the recovery of the stock market may ultimately lead to these economic improvements, what I am suggesting is that they are not in and of themselves evidence of economic recovery. Thus, when the "experts" cite recovery in the stock market as evidence of economic recovery, I feel they should instead cite recovery in the stock market as an indicator of the likelihood of future economic recovery.
ReplyDeleteHonestly, I'm so glad I graduated high school last year instead of college. A few of my co-workers who have graduated college are still stuck at that job because they can't start on what they want their career to be, because no one is hiring. It's bad news for now, but I am 99% positive that things will turn up in the job market within the next couple of years. It ALWAYS does.
ReplyDeleteE, A