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View Full Version : Unemployment Rates and Duration of Unemployment



Jake
3rd April 2010, 21:17
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DaleFromCalgary
4th April 2010, 08:24
"This changed in the early '90s - perhaps as a result of more careful hiring practices or changes in demographics or maybe other reasons"

An obvious reason that comes to my mind immediately is that by the 1990s, offshore outsourcing reached an apex. In previous recessions, the factories eventually re-opened in the USA and Canada. This time around the factories are in Asia. Most Americans laid low by the Panic of 2008 were in menial jobs or housing-related jobs that aren't coming back anytime soon.

A depreciated US$ won't help bring back the factories because an Asian worker is still far cheaper than a minimum-wage American, and will work harder.

realmoney
4th April 2010, 10:02
The length of time people are unemployed today is getting VERY long. So long that I think this number is a major contributor to a statistic the govt ignores in their unemployment calculations: "discouraged workers" who are those people who have given up trying to find employment. These people are erased from the official unemployment rolls. We are in bad shape in this country.

Yes, and so many are in denial imo. But Jake, not sure how this very bad employment situation is bullish for silver. I would think improving employment would be better news for PMs (short of a total economic collapse, SHTF, barter situation). Can you elaborate?

thanks,
RM

Jake
4th April 2010, 12:20
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DaleFromCalgary
4th April 2010, 13:53
I suspect most of the unemployed people would not have bought silver even if they still had a good job. That ominous exponential curve on the chart is probably mostly people who weren't doing any useful kind of job before the Panic of 2008. Canada and the USA can get along indefinitely without more realtors, financial advisors, boutique operators, dog walkers, shop clerks, and day labourers.