Monday, June 05, 2006

Deflating the low unemployment myth

Care of the Big Picture I see a link to an interesting report:

Unemployment fell to 4.6 percent largely because more adults chose to not participate in the job market. The adult labor force participation rate remains significantly lower than when George Bush took over stewardship of the economy. If adults were participating in the job market at 2000 levels, 2.7 million more people would be looking for work and unemployment would exceed 6 percent. - Professor Peter Morici, School of Business, University of Maryland
Some comments on the Big Picture link also bring up discouraged-unemployment and underemployment, which may be why average salaries have not gone up as fast as the "recovering" market has. Many businesses are definitely making a lot of money, but the average worker is not. When Bush cheers his economic recovery, he's really cheering his big-business pals (such as Ken Lay), and not you or me. The Big Picture has a separate post on this dichotomy, and why the current administration will never understand its constituents.

Thoughts?

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