Why Everyone Suffers When Job Seekers Give Up
July 20, 2010 by admin
Filed under Job Search
Among the surprises in last month’s job report was the downward slide in the unemployment rate from 9.7 percent to 9.5 percent. Most of the time, high unemployment rates are bad and low unemployment rates are better. But when the percentage of out-of-work Americans dipped in June, it was driven largely by a 652,000 drop in the labor force.
Some job seekers might see this, on its face, as a good thing—fewer labor force participants means less competition for jobs. The truth is much less helpful. When able workers drop out of the job market, their households make do with less income, and their long-term financial health may be threatened, as savings are depleted. The aggregate economy suffers, too, as it chugs its way out of recession—it loses their contributions as workers and their buying power as consumers…
Read the original article at usnews
