Declining jobless numbers, sprouting lately from the Obama administration like so many spring crocuses, have left even the Chairman of the Federal Reserve puzzled over figures that are "out of sync" with the overall economy.
"[T]he combination of relatively modest GDP growth with the more substantial improvement in the labor market over the past year is something of a puzzle," Bernanke admitted to the National Association for Business Economics earlier this week.
Bernanke then proceeded to explain why unemployment figures from the administration seem so out of step with the reality most folks are experiencing. He started with a basic, but often overlooked, part of the jobless equation. "The monthly increase in payroll employment, which commands so much public attention, is a net change," he said. "It equals the number of hires during the month less the number of separations (including layoffs, quits, and other separations)[.]"
"[T]he combination of relatively modest GDP growth with the more substantial improvement in the labor market over the past year is something of a puzzle," Bernanke admitted to the National Association for Business Economics earlier this week.
Bernanke then proceeded to explain why unemployment figures from the administration seem so out of step with the reality most folks are experiencing. He started with a basic, but often overlooked, part of the jobless equation. "The monthly increase in payroll employment, which commands so much public attention, is a net change," he said. "It equals the number of hires during the month less the number of separations (including layoffs, quits, and other separations)[.]"
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