Why the 4.7% Unemployment Rate is BAD for You

Jun 5, 2016 1:12:47 PM

As a career professional, if I’m going to take on the task of helping everyone I touch to get their next perfect job faster than the national average, then I’ve got to not only listen to the “word on the street” to understand today’s job market, I’ve got to read what the statisticians in Washington have to say as well.
So today I want to break down for you why the low unemployment rate hides the real truth from this month’s Bureau of Labor Statistics report, and what it means for you.
The unemployment rate ticked down to 4.7% this month, and if you read only that headline, which many media outlets are sticking to, you might think the economy ain’t so bad. Well, if you read the full BLS report, which I do every first Friday of each month (it’s dry as a bone!), you’ll find hidden in there that there are other numbers that truly reflect the current state of the job market.
The truth is the economy only created 38,000 jobs this past month, vs. the 162,000 that were expected. Now, part of that was because of a large strike happening in Verizon, but even if those strikers were employed, it would have only added another 35K to that abysmal number. The BLS estimates that the U.S. needs to create at least 200,000 jobs a month to keep up with the growing work force. In other words, that’s why your kids are moving back home after college.
Another fact pointed out in the report is that the median (middle) income per household has only risen 2% since 1995. Not 2% per year… 2% total. The median household income in 1995 was $52,600. Twenty one years later, the median household only makes $1,000 more total, at $53,600. In other words, when you take inflation into account, our incomes have stagnated, while our cost of living has gone up. Sad news, indeed.
Though the economy created 38,000 jobs, they were more low paying jobs than what have existed before, and over 220,000 people last month gave up on looking for a job. This is a trend that has continued month after month, and just adds to the growing number of long-term unemployed in the U.S.
I saw Paul Krugman on "This Week with George Stephanopoulos," who is an uber-progressive economist and big fan of Obama's economic policies. I was shocked to hear him admit that it has been a "weak recovery" and "not what we expected" as we recover from the Great Recession. I never thought I would hear him actually say it. It's a shame that, even when the experts on board admit the economy is still in shambles, the media doesn't shed light on the whole story for you. It leaves you confused as to why you still don't have the job you deserve.
I could go into so much more detail on this flailing job market and economy, but I wanted to give you the most important points so that you are quickly but fully informed when you’re looking for a job. It just helps to make my point that you have to stand out from an ever increasing crowd of job seekers – and yes, that includes executive job seekers – and you have to have a plan.
If you have a few more minutes, take a look at a recent instructional video I made about using a 3-pronged approach to your executive search, rather than relying on the job boards and recruiters that never get back with you.
Just watch the video I posted in this blog two days ago to hear my plan that has been proven to work over the last 13 years. If you like what you hear, subscribe to my YouTube channel and be the first to see my latest videos!
Tammy Kabell

Written by Tammy Kabell

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