Population Growth and the True Unemployment Numbers

The weekly numbers for initial jobless claims wereemployment level is rather conservative when
released today showing a "better than expected"compared to this figure. What this means is that
number of "only" 432,000. The "better thanthe 432,000 lost jobs must be increased by at
expected" part of this number is because theleast 150,000 to give an accurate picture of how
average estimate by a group of leadingour economy is performing - falling behind by
economists was for this number to come in at682,000.
460,000. Either way, these negative numbers areThere are other components of the
not good, and worse yet, they don't paint anunemployment statistics that are meant to
accurate picture.provide a better overall picture of our economy's
The initial claims report is the number of peopleemployment, such as the continuing claims
who claimed unemployment for the first time thisnumber which attempts to keep track of the
past week. In other words, 432,000 people losttotal number of people unable to find work. This
their jobs for one reason or another during thenumber is similarly understated because we can
week of Christmas. What this number misses isonly track the number of people who are in the
the how many people "came of age" during thisinitial 26 week unemployment cycle. All those
week, but have not yet become employed. Bypeople who could not find work in that 6 month
this I mean the total number of people in theperiod stop being counted whether they find
country who turned 18, and are now consideredemployment, or not. Worse again is the distortion
adults. Not all of these people will be looking for acaused by the recent extension of unemployment
job right away, but the vast majority will needbenefits. The good news is that folks looking for
employment in the near future, even if that iswork, but not able to find it are being subsidized
after they graduate from college.beyond the accepted 26 weeks, but the bad
The bottom line is for our economy to maintain anews is that the unemployment figures do not
level of employment, and keep up with populationcontinue to account for them as unemployed.
growth, whether that be 90%, 95%, or anyThey just "disappear" from the ranks of the
other number, we must actually Create jobs, notunemployed.
limit the number of job losses. Consider the factI don't mean this article to be as much of a
that our country has approximately 325 Milliondowner as most will think, but rather to raise
people. If population growth were limited to 1%awareness of just how big the task at hand is.
that would be 3.25 million new citizens each year.Until we are given more accurate information, it
3.25 million divided by 12 months is over 270,000will be near impossible to create a comprehensive
new mouths to feed every month. The 150,000plan that has a chance of success.
new jobs necessary to maintain a stable