BY: Adam Gavriel
“The Federal Reserve has a dual mandate to promote price stability and ensure full employment. It has yet to achieve either. It has set an annual inflation target of 2 percent, yet the consumer price index rose only 0.1 percent in May after falling 0.4 percent in April, and it was up only 1.4 percent in the 12 months ending in May.”
Mr. Shilling continues: “The central bank hasn’t defined what it would consider full employment, even when it pledged to continue buying $85 billion in securities each month ‘until the outlook for the labor market has improved substantially.’”
The Federal Reserve’s efforts have not appeared to be overly effective in the employment market. Despite a recovery, and a slow by steady improvement, the US unemployment rate remains at 7.6 percent – relatively high for historical standards.
“About 1.65 million more people would have jobs if the unemployment rate dropped to the Fed’s trigger level of 6.5 percent. Even though the Fed hasn’t specified a full-employment rate, past discussions suggest it believes that 5 percent to 6 percent joblessness is possible without straining labor markets. A 5.5 percent rate would add an additional 1.6 million employees, for a totally of 3.2 million.”
Unfortunately for the American economy and job seekers, the United States unemployment rate hasn’t been below 6 percent since July 2008, and hasn’t been five percent or lower since April 2008; now over five years ago.
This report from Mr. Shilling has to be one of the most informative we have seen on the Economy in quite some time. The veteran expert on the economy paints a bleaker picture than the numbers are trying to convey. While the American economy remains in a recovering trend, the numbers simply do not reflect where the country needs to be. Underemployment and labor participation rates continue to truly reflect what continues to be a struggling nation.
As an employment agency, we at Crossroads Consulting take these numbers to heart when they are released. In the office we are in a position to directly impact the Nation’s economy as a whole, and we take pride in our ability to help our neighbors.
Conducting business as a search firm, it is also our duty to find you. Unfortunately, we can’t find all of you. We implore you to use us as your connection into the position you have been looking for. Crossroads Consulting is currently hiring nearly 50 positions located around the United States, but we can’t fill them without YOU.
Even if you can’t find a position that you’re looking for on our website, make sure you email us your resume TODAY. Not confident in your resume? We have a recommended resume service that will make sure your resume most effectively jumps off the page to potential employers.
We want to be there from step one, until you’re walking into the office on your first day. Our mission is to put the ‘human’ back into ‘human resources.