In service based economy , the real capacity of what we produce is service based , industrial utilization is good for industrial manufacturing based economy . The best measure for utilization in service based economy is employment and therefore unemployment in this
Unemployment statistics
• • US population = around 300 million
• • Adult population ( 16 yr older + old folks) = 240 million
• • Labor force (working force) = 150 million
• • Number of unemployed(no job and have looked for 4 weeks) = 14 million
• • % Unemployed Present ((number of unemployed/total labor force)) = 9.1 %
• • Long term unemployed (27 weeks and over)= 6 million
• • % Long term unemployed = 49.2 % of Unemployed
• • % Unemployed Jan 08 = 5 %
• • Marginally attached workers (want to work have looked in past 12 months are not counted as unemployed)
• Discouraged workers is subset of marginally attached workers ( not actively looking for more than 5 weeks) and thinks there are no jobs available
US Total Unemployment Rate - Including Marginally Attached Workers Plus Total Employed Part Time for Economic Reasons =16%
http://metricmash.com/unemployment.aspx?code=LNS13327709
Monday, May 30, 2011
Thursday, April 14, 2011
Unemployment ,
Situation :Teenage unemployment rate increased from 13.2% in 2000 to 28 % in 2011 . For much of the past 60 years, the proportion of 16-to-19-year-olds who held jobs — either part or full time — was around 40%. In fact, in 2000 it was a relatively high 45%. In all, nearly 7.3 million teens were getting a regular paycheck..
Facts:Older workers are not exiting the workforce and in some situations are getting back in the workforce after a decade of hiatus The retail and construction sectors, which are usually key employers of young workers, have been among the hardest hit.
Potential outcome The only plus of this grim circumstances is teenage students are staying back in school in fact the school enrollment rate for 16-to-19-year-olds has risen to 83%, up from 78% in the mid-1990s which in turn can lead us to believe that we might have an increase in skilled labor force n coming years
Facts:Older workers are not exiting the workforce and in some situations are getting back in the workforce after a decade of hiatus The retail and construction sectors, which are usually key employers of young workers, have been among the hardest hit.
Potential outcome The only plus of this grim circumstances is teenage students are staying back in school in fact the school enrollment rate for 16-to-19-year-olds has risen to 83%, up from 78% in the mid-1990s which in turn can lead us to believe that we might have an increase in skilled labor force n coming years
Thursday, March 3, 2011
Quantitative Easing
Direct injections of money into the economy can have a number of effects. The sellers of the assets have more money so may go out and spend it. That will help to boost growth. Or like in reality they may buy other assets instead, such as shares (share buy back policies) or company bonds which we have seen in past, the corporations have money ,they are already sitting on a lot of cash.
By buying MBS,AAA Corporate debt, long term treasury securities the FED’s anticipation of reenergizing economic activities needs to be closely watched
By buying MBS,AAA Corporate debt, long term treasury securities the FED’s anticipation of reenergizing economic activities needs to be closely watched
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