AP Economist Speculates On Recession and Unemployment Dip

J.J. Jackson* | March 10, 2008

Filed Under Economy / Economics, The Economy

Jeannine Aversa, Economics Writer for The Associated Press, really knows how to “connect the dots”.

WASHINGTON (AP) — Employers slashed jobs by 63,000 in February, the most in five years, the starkest sign yet the country is heading dangerously toward recession or is in one already.The Labor Department’s report, released Friday, also showed that the nation’s unemployment rate dipped to 4.8 percent as hundreds of thousands of people — perhaps discouraged by their prospects — left the civilian labor force. The jobless rate was 4.9 percent in January.

How exactly Ms. Aversa comes to this conclusion however is the same sort of voodoo that is often practiced by many so-called experts. How 63,000 jobs being cut but the unemployment dipping 0.1% means that we are headed “dangerously towards recession” is beyond logic since a recession is measured by economic growth and not unemployment rate or the number of jobs polled companies cut. You’ve also got to love the assumption that the reason the unemployment rate dipped was because the poor masses are just giving up. With all the jobs out there this is hardly and excuse. Just ask employers here in Pittsburgh how many jobs are available but the applicants can’t even pass the drug test.

Could it possibly be that many people are like my friend John who, after being laid off in January had another job lined up within 5 days and weren’t unemployed very long? Hmm. Let me scan her article. Nope. No mention of that possibility. I wonder why.

What we have here is simply more fear mongering and quasi dot connecting to try and tell a story that someone wants told.

Good thing I haven’t gone into the fetal possition yet because I can actually see what it is really going on.

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