People watch French President Nicolas Sarkozy delivering a keynote speech through a TV screen at the G20 press center in Paris, France, Feb. 18, 2011. The 2-day G20 meeting of Finance Ministers and Central Bank Governors opened here on Friday.
Friday, February 18, 2011
Gallup shows U.S. jobless rate worsens in mid-February
WASHINGTON, Feb. 18-- The politically sensitive unemployment situation in the United States is not improving as shown in government statistics, at least from the perspective of an influential private organization's survey.
The U.S. unemployment rate rose to 10 percent in mid-February from 9.8 percent at the end of January, according to a Gallup poll published on Thursday.
At the same time, underemployment -- the jobless rate plus part- timers seeking full-time work -- surged in mid-February to 19.6 percent from 18.9 percent at the end of January, the study found.
The poll is not an official government study, and is separate from statistics kept by the U.S. Bureau of Labor Statistics, which found that unemployment dropped to 9 percent in January from 9.4 percent in the previous month.
The rise in Gallup's underemployment rate, which stands near last year's level of 19.8 percent, was largely a result of the sharp increase in the number of people working part time but seeking full-time work.
The surge in underemployment is "troubling," as current conditions in the job market have barely improved from this time a year ago, said Dennis Jacobe, chief economist at Gallup. Since then, some who were previously unemployed have obtained part-time jobs, which allowed them to re-enter the workforce, although they are still seeking full-time employment.
"This is not much to show for a year in which many macro- economic indicators showed improvement," Jacobe said.
Indeed, jobs remain key to jumpstarting the economy, and mid- February underemployment results suggest little or no progress is being made in that regard, he said.
The news comes at a time when the United States has been struggling with a flagging jobs picture for three years. In spite of the high jobless rate, a laundry list of factors spell good news for the U.S. economy: gross domestic product rose last quarter, corporations are seeing bumper profits and the stock market recently crossed the 12,000 mark for the first time since 2008.
Under normal circumstances, that might spur hiring and a rapid recovery from the worst recession in roughly 80 years. But this is no ordinary recovery, and jobs continue to remain elusive.
Economists are mixed on the reasons why companies are not hiring more in the face of what otherwise would seem to be an economic comeback.
Some hold that small businesses, which contribute to more than 50 percent of private sector employment, are reluctant to hire.
Oddly, that is not because new workers are not needed. A recent Wells Fargo/Gallup Small Business Index survey found that 51 percent of small-business owners who employ people other than themselves hired new workers last year. But of those, 42 percent hired fewer new employees than they needed because they are uncertain of future sales or revenues.
Many economists said that while the economy will add jobs this year, it will not be enough to significantly reduce high levels of unemployment, although 2012 could see hiring on a more significant scale.
Some others were more optimistic, arguing that the jobless rate will come further down by year's end.
The U.S. unemployment rate rose to 10 percent in mid-February from 9.8 percent at the end of January, according to a Gallup poll published on Thursday.
At the same time, underemployment -- the jobless rate plus part- timers seeking full-time work -- surged in mid-February to 19.6 percent from 18.9 percent at the end of January, the study found.
The poll is not an official government study, and is separate from statistics kept by the U.S. Bureau of Labor Statistics, which found that unemployment dropped to 9 percent in January from 9.4 percent in the previous month.
The rise in Gallup's underemployment rate, which stands near last year's level of 19.8 percent, was largely a result of the sharp increase in the number of people working part time but seeking full-time work.
The surge in underemployment is "troubling," as current conditions in the job market have barely improved from this time a year ago, said Dennis Jacobe, chief economist at Gallup. Since then, some who were previously unemployed have obtained part-time jobs, which allowed them to re-enter the workforce, although they are still seeking full-time employment.
"This is not much to show for a year in which many macro- economic indicators showed improvement," Jacobe said.
Indeed, jobs remain key to jumpstarting the economy, and mid- February underemployment results suggest little or no progress is being made in that regard, he said.
The news comes at a time when the United States has been struggling with a flagging jobs picture for three years. In spite of the high jobless rate, a laundry list of factors spell good news for the U.S. economy: gross domestic product rose last quarter, corporations are seeing bumper profits and the stock market recently crossed the 12,000 mark for the first time since 2008.
Under normal circumstances, that might spur hiring and a rapid recovery from the worst recession in roughly 80 years. But this is no ordinary recovery, and jobs continue to remain elusive.
Economists are mixed on the reasons why companies are not hiring more in the face of what otherwise would seem to be an economic comeback.
Some hold that small businesses, which contribute to more than 50 percent of private sector employment, are reluctant to hire.
Oddly, that is not because new workers are not needed. A recent Wells Fargo/Gallup Small Business Index survey found that 51 percent of small-business owners who employ people other than themselves hired new workers last year. But of those, 42 percent hired fewer new employees than they needed because they are uncertain of future sales or revenues.
Many economists said that while the economy will add jobs this year, it will not be enough to significantly reduce high levels of unemployment, although 2012 could see hiring on a more significant scale.
Some others were more optimistic, arguing that the jobless rate will come further down by year's end.
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