Economy 52,847 Posted October 4, 2014 Share Posted October 4, 2014 http://www.forbes.com/sites/samanthasharf/2014/10/03/jobs-report-u-s-economy-added-248000-jobs-in-september-unemployment-down-to-5-9/ Once again the US economy adds a solid number of jobs. This time it was 248,000 for the month of September! Unemployment also fell to 5.9% the lowest in several years! One negative statistic was that once again the labor force participation rate fell (100,000 people left labor force last month) and has reached its lowest level in Decades The economy should be stronger and more productive with an unemployment at 5.9% but too many people are retiring and the economy may reach its full capacity sooner than expected! Link to post Share on other sites More sharing options...
Arturo 40,746 Posted October 4, 2014 Share Posted October 4, 2014 Obama, his power! Link to post Share on other sites More sharing options...
Fiona Apple 13,006 Posted October 4, 2014 Share Posted October 4, 2014 Nice! Link to post Share on other sites More sharing options...
Echo 327 Posted October 4, 2014 Share Posted October 4, 2014 Full capacity? Link to post Share on other sites More sharing options...
Cody Draco 2,531 Posted October 4, 2014 Share Posted October 4, 2014 The fact I read this in my Economics class. You should be proud of me Economy. #LittleEconomer Link to post Share on other sites More sharing options...
Economy 52,847 Posted October 4, 2014 Author Share Posted October 4, 2014 Full capacity?Full capacity basically is the strongest the economy can reach while still performing in a stable and healthy mannor For instance interest rates are at 0% and soon we will hit a maximum capacity for that. If we dont raise rates once the economic activity reahes a certain level ull get high inflation, asset bubbles and other imbalances. But at a higher interest rate the economy can safely operate at a higher capacity without issues In this case tho in the OP they are refering to maximum strength the economy can safely reach with the labor we got... Once unemployment reaches 4% thats considered full capacity because lower than that u start to go into a labor shortage, companies have a hard time finding employees and the economy cant operate as efficiently Because the labor force participation rate has droped from what it was 10 years ago... We will reach full capacity for the labor we got at a weaker economic state than what the economy would be like at full capacity 10 years ago! Hope i was clear :) Link to post Share on other sites More sharing options...
Ursula Buffay 73 Posted October 4, 2014 Share Posted October 4, 2014 Obama, ha impact! Fixed Link to post Share on other sites More sharing options...
Echo 327 Posted October 4, 2014 Share Posted October 4, 2014 that statement can refer to two different things... The strongest an economy can safely perform under specific conditions such an interest rate. For instance interest rates are still at 0% but there will be a full capacity for that rate. If the economy heats up to full capacity for the rate and rates arent risen... Inflation will be too high, asset bubbles and other imbalances will form and the economy wont function properly In this case tho they arent refering to full capacity for the current rates but rather full capacity with labor... When unemployment reaches around 4% they consider that full capacity. If the economy grows beyond that and there isnt enough labor you go into a labor shortage and thats not healthy In this case because less people are in the workforce than before... The economy will reach full capacity at a level not as productive as what full capacity was say in 2006... Since the labor force participation rate was higher, the economy at full capacity in 2006 would be stronger than what full capacity would be now. Hope i was clear enough :) Oh so full capacity now wouldn't be great like before. Link to post Share on other sites More sharing options...
Economy 52,847 Posted October 4, 2014 Author Share Posted October 4, 2014 Oh so full capacity now wouldn't be great like before.i actually edited my post to try an explain it better i dont know if i succeeded... But basically yes...If we reach 4% unemployment the economy wont be as strong and productive as what it was when unemployment was 4% in 2006 :MANiCURE: Link to post Share on other sites More sharing options...
Echo 327 Posted October 4, 2014 Share Posted October 4, 2014 i actually edited my post to try an explain it better i dont know if i succeeded... But basically yes... If we reach 4% unemployment the economy wont be as strong and productive as what it was when unemployment was 4% in 2006 So much sass in that last post I love it and you for explaining this to me. I never thought of retirement that way. Link to post Share on other sites More sharing options...
Economy 52,847 Posted October 5, 2014 Author Share Posted October 5, 2014 So much sass in that last post I love it and you for explaining this to me. I never thought of retirement that way.yes well jobs and economic strength rely on economic activity to support them. And economic activity is basically production and consumption When ur retired ur not producing anything, and generally speaking u consume less cause you cut down on spending So more people retired means a less active and less productive economy its as simple as that! Japan for instance has a low unemployment rate but their labor force participation rate is really low cause they have both a really old population full of retirees AND a lot of women dont work in Japan. As a result, despite low unemployment, their economy is actually extremely weak because they just arent productive Of course lots of factors influence economic strength not just the percentage of people in the work-force. But it is one of the major factors! :coffee: Link to post Share on other sites More sharing options...
Nein 508 Posted October 5, 2014 Share Posted October 5, 2014 Nice! Link to post Share on other sites More sharing options...
DrewStevens 5,249 Posted October 5, 2014 Share Posted October 5, 2014 Yaaaas. Us, we are USA... the job chanteuse :legend: Link to post Share on other sites More sharing options...
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