Unemployment Rate Dips, Economy Ready to Move Onby Tim Manni
We seem to have entered a stage of the recession which HSH VP Keith Gumbinger has referred to as the “garden variety” recession. Despite still being trapped amongst inconsistent economic reports, many key indicators, in this case the employment situation, seems to be trending in the right direction.
The number of jobs lost in July has been the lowest since last August. Surprisingly, despite another 247,000 Americans losing their jobs last month, the unemployment rate actually fell by 0.1%. While the falling unemployment rate certainly has many of us encouraged, the job market is still clawing its way out of a very deep hole.
Despite the smaller number of job losses, July marked the nation’s 19th consecutive month of job reductions, bringing the total number of job cuts to 6.7 million since the recession began in December of 2007. “Adjusting for population increase, the country needs to see a positive job growth of 130,000 in order to land the unemployment rate back to zero, said Gumbinger”
Back to notion of the ‘garden variety’: “The economy appears to have returned to the place it was just before Fannie, Freddie, and Lehman collapsed last September. We’re back to where we were before the deepest part of the recession occurred,” said Gumbinger. Instead of relying on extraordinary government programs to address the key issues of the collapse, the economy finally seems ready to begin rebuilding on its own.