Friday, March 6, 2009
High Unemployment Rate Topic On Paltalk
The unemployment rate in the United States has hit a 25-year high. But is this reason to panic?
At least one expert says, no.
Randall Filer, professor of economics at Hunter College believes the rate will stop well short of its peak in the 1982 recession.
Figures released by the federal government show that unemployment in the U.S. is at 8.1 percent. But Filer says it doesn't mean they will continue to trend upward.
“The unemployment numbers drifted down a bit in February," Filer notes.
"It is important to remember that these numbers are for new claims. You cannot infer an unemployment rate until after you know the corresponding number of people who left the roles.”
That's not to say there isn't cause for concern.
"There is no doubt that the February numbers are bad news, especially of you are one of the 650,000 workers who lost their jobs," Filer notes.
"The good news, however, is that in recent recessions, unemployment has been a lagging indicator, meaning it continues to rise for a while after economic growth has started. The fact that February sales were up and that the Conference Board's leading indications have been up for two months in a row gives cause for optimism. We may see further drift up in unemployment but it will stop well short of the peak in the 1982 recession.”
Filer will be my guest at 5 PM New York time today on News Talk Online on Paltalk.com. To talk to him CLICK HERE.
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