U.S. Adds Only 88,000 Jobs; Jobless Rate Falls to 7.6%
The unemployment rate has been slowly declining but does that really mean that the economy is improving and that jobs are being generated? The unemployment just dropped from 7.7% down to 7.6% but only 88,000 jobs were created compared to the 268,000 in February when the unemployment rate was even higher. Taking a closer look at the unemployment rate, 7.7% fell down to 7.6, not because more jobs were being created but because the number of people in the labor force fell. People who were actively looking for work also fell accounting for the slight decrease in unemployment rate. Another issue that arises is that most of the jobs being created are low wage paying jobs that are temporary while most of the jobs lost that were lost are middle wage paying. Although the economy is recovering, it is not doing as well as it seems and the high unemployment rate will continue to affect many people.
Although statistically shown that the unemployment rate is decreasing, jobs aren’t really being generated. The low paying and temporary job replacement of middle class people will have a large impact on the economy. The shift from middle paying to lower paying will widen the wealth gap creating more inequality although unemployment rate is going down. The unemployment rate has many factors built into it and we cannot assume that the economy is doing better just being the numbers are showing that.
Written by: Wilson Tang