BLS: Twenty-three States had Unemployment Rate Decreases in March
In this blog post by Bill McBride, he comments on the unemployment rates of many different states and how nearly half our country saw unemployment drop in the month of March. Approximately twenty-three had decrease, fifteen saw no change, and twelve states had decreases. The three states that showed the largest decreases in unemployment were Texas, Oklahoma, and Pennsylvania. The three states that showed the largest increases were California, Florida and Massachusetts (GET OUT OF DODGE). All of this information points to good results but when we actually think about what these numbers entail, is it a good thing?
When looking at these graphs there is a good feeling from them because all the numbers are lower than they were in the great recession. All of the states in graph number one have shown improvements in decreasing the unemployment rate since the great recession. That is because federal and state government have been monitoring the unemployment rates like hawks and have been implementing plans to ensure they don’t get too high ever again. In graph two we get an idea how the great recession affected unemployment and how our country responded after the fact. At the beginning of this year only five states have an unemployment above 7% which is fantastic where as five years ago 45 states had unemployment rates of 7%. So clearly our country is doing something right in fixing the overall unemployment right?
Overall these are relatively good statistics but what needs to be done to measure the effectiveness of our government and the plans our government has issued. The size of the real labor forces in each state should be measured or at least estimated so that the unemployment rate is more real because the unemployment nowadays goes down simply because people leave the labor force because they can’t find a job or their job isn’t available. Since many people should be in the labor force but aren’t because of frictional and structural unemployment many of these unemployment rates are lower than what they should be which makes us ask the question; Is our government really creating the right plans for our economy to grow and improve?