Tuesday, March 15, 2016

The economic realities hit home

It was announced today that Wyoming sustained the largest jump in unemployment in the nation.  We now have 4.7% unemployment, up form 3.8% last year.  This is due, of course, to the decline in the extractive industries.

Chances are high that his rate is actually higher, in real terms, than it might appear.  Indeed traditionally 4.7% is statistically below "full employment".  But here that 3.8% reflected a situation in which there was a labor demand, and labor as coming in.  4.7% reflects a situation in which labor is leaving, so the actual rate is higher, as people who are unemployed leave, particularly those who recently arrived.

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