End of Extended Unemployment Could Cause Jobless Rate to Tumble

Making people get a job will be the best stimulus to the economy ever.
Check it out:

The end of extended jobless benefits for more than 1 million Americans last week could cause the unemployment rate to tumble dramatically early this year, according to some Wall Street analysts.

Nearly 1.4 million people received payments through the financial-crisis era program as of Dec. 14, 2013, the Labor Department said Thursday. Those benefits expired last week. If a large portion of the recipients now drop out of the labor force, the unemployment rate would fall.

TD Securities estimates the decline in the jobless rate could be as much as a half-percentage point. Other analysts suggest the fall could be a smaller, but still significant, quarter-point drop.

The unemployment rate is the share of the total labor force that is out of work but actively seeking employment. To receive jobless benefits recipients need to keep applying for jobs. But once the government deposits stop flowing, they may be less motivated to look for work and thus drop out of the labor force.

GET MORE STORIES LIKE THIS

IN YOUR INBOX!

Sign up for our daily email and get the stories everyone is talking about.

Email

Previous post

Maryland Allows Illegal Aliens to Receive Drivers Licenses

Next post

Pedophilia the Next 'Sexual-Rights' Revolution?

Join the conversation!

We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.