- Formula shows why it’s so hard to cut jobless rate, By Jeannine Aversa (AP), February 1, 2010, Janesville Gazette: “The economy’s 5.7 percent growth last quarter – the fastest pace since 2003 – was a step toward shrinking the nation’s 10 percent unemployment rate. There’s just one problem: Growth would have to equal 5 percent for all of 2010 just to lower the average jobless rate for the year by 1 percentage point. And economists don’t think that’s possible. Most analysts say economic activity will slow to 2.5 percent or 3 percent growth for the current quarter as the benefits fade from government stimulus efforts and from companies drawing down less of their stockpiles. That’s why the Federal Reserve and outside economists think it will take until around the middle of the decade to lower the double-digit jobless rate to a more normal 5 or 6 percent…”
- Unemployment rises in most metro areas during December, By Christopher S. Rugaber (AP), February 3, 2010, Detroit Free Press: “Unemployment rose in most cities and counties in December, signaling that companies remain reluctant to hire even as the economy recovers. The unemployment rate rose in 306 of 372 metro areas, the Labor Department said Tuesday. The rate fell in 41 metro areas and was unchanged in 25. That’s worse than November, when the rate rose in only 154 metro areas, fell in 170 and was unchanged in 48. In all, joblessness topped 10% in 138 metro areas, up from 125 in November but below last year’s peak of 144 areas in June. The highest unemployment rate was in El Centro, Calif., with 27.7%, followed by Merced, Calif., at 19.8%. El Centro is heavily agricultural and has many seasonal farm workers who are frequently unemployed. Its jobless rate is down from 33.1% in August…”
Poverty-related issues in the news, from the Institute for Research on Poverty