Assignment 2


In the article “The New Jobs Numbers Signal the End of an Economic Era” discusses how unemployment rate recently fell from 4.9 percent to 4.6 percent within the month of November, which has not been this low since August 2007. The increase of unemployment that first started in August 2007 was due to losses on U.S mortgage-related bonds. Part of the unemployment decline was caused by 226,000 people who dropped out of the labor force and 160,000 people reported themselves as employed. Another reason is now middle age people especially men are not working and are not looking for work which remains a weak spot in the U.S economy. People who say they wanted a job and looked for one last month dropped to 7.4 million which is the lowest since November 2007. Bond markets are priced to reflect a return to normal interest rates. Also, there was some progress toward higher wages, where there was a 2.5 percent gain in that the wage represented income gains during the time of low inflation. With 178,000 jobs in the U.S being added in November, the combination of low unemployment rate and shrinking labor force implies that the economy will not be able to keep it for that long. In order to continue job growth, employers need to get people who are fit and ready to work. The graph used in the article was to show the rate of unemployment and how it has changed throughout the years. It also shows the average percent of unemployed people in 2016. Data collected was probably from those who are unemployed each year.

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