This week the Department of Commence announced 120,000 new jobs were created during March, and the unemployment rate decreased to 8.3%. Any job growth is better than job losses; but we need to face the reality that we continue in a very poor job market.
The above Chart of the Day highlights the slow job growth. You can follow the growth between 1961 and 2001; then, growth stops. If the economy continues to create jobs at the rate of 120,000 per month, we will not reach the same job level until 2015.
The economy needs to create 250,000 jobs each month to absorb new workers entering the work force. Any month with less growth is not good news. Besides, the improvement in the unemployment rate came from less people seeking work, not strong job creation.
Two groups make up those no longer seeking work. The first group is younger workers unable to find employment. Rather than continue to struggle in the job market, many go back to school for more education or advanced degrees believing that better jobs lie ahead. In the near future, these folks will reenter the job market.
The second group involves older workers, especially those over 55, who became discouraged. They decided to retire rather than continue job hunting. As they face the economic realities, more will be forced back into looking for a job. Look at the faces in fast food restaurants; you already see more post-retirement workers than 10 years ago.
My advice to job seekers is to stay diligent; jobs are still hard to find. Many will need to accept less pay than they received in a better economy. These are hard realities. Better to have some income than nothing.
King Solomon advised, “Whatever your hand finds to do, do it with all your might.” (Ecclesiastes 9:10, NIV) This applies to searching for a job or holding on to the one you have.
Steve Marr, Your Christian Business Coach
Subscribe to the free Business Proverbs e-mail here: http://bit.ly/ncixc1