This Friday, the Bureau of Labor Statistics will provide a picture of the employment situation in America. This situation report will tell us whether the national unemployment rate has changed. Also, the report will tell us how many new jobs employers created in the nation.
The number of jobs created is important because, for one, new people are entering the labor market each day, and we need new jobs for these people. Also, we need new jobs for the people who are and have been unemployed.
Jobs mean income for the unemployed, and a better possibility of buying a home or refinancing a home. Also, new jobs in the U.S.’s current economy will likely mean an increase in demand for goods and services produced by those already working.
What economists strive for is an unemployment rate of four to six percent, rather than today’s 7.9 percent. We strive for four to six percent unemployment because we believe the economy is healthy with a rate of four to six percent. Four to six percent reflects a regular number of people changing jobs (for example, those leaving one job for a better job).
The report this week will show whether the unemployment is moving closer to a healthy level, staying the same, or moving away from a healthy level. We are all hoping we are moving closer to a healthy level.