Saturday, September 7, 2013

US EMPLOYMENT AND WAR

Fight a war and create a GDP growth. Well this has been the game strategy of US economy over the last 3 decades. It’s a blessing in disguise for the economy which is struggling to find its GDP growth followed with an stable macroeconomic numbers. If its airstrikes against Syria then its would push up the international cost of crude which would become a blessing for the US economy which is itself producing the same.US would be able to sell bonds at an higher price since war funding would be made and moreover the US economy would finds some growth from the war.

Recently I made a quick study about its unemployment numbers and its growth numbers where I find that is should come up with the hard facts in the presence of all of you. The U.S. created a modest 169,000 jobs in August. In August, you see, the number of people working part-time (under 35 hours a week) fell by 234,000, while the number working full-time rose by 118,000. Manipulation of numbers happens in terms of unemployment number coming down to below 7% is an fatal story. Over the past year, the BLS estimates that full-time jobs have increased by 1.7 million, while part-time workers have increased by 288,000. Full-time work has increased by about 1.5%, while part-time work has increased by about 1%. Hence the economic stability of US is far yet to come. At the same time, the labor force participation rate fell to 63.2%, the lowest level since the summer of 1978, as some 312,000 people stopped looking for work. The participation rate measures how many healthy, working-age people 16 and older are looking for jobs.

I went for further research to find the fact more where I found that In August, the number of long-term unemployed (those jobless for 27 weeks or more) was about unchanged at 4.3 million. These individuals accounted for 37.9 percent of the unemployed. Over the past 12 months, the number of long-term unemployed has declined by 733,000. Full time job is a distant dream for the American citizens. The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) declined by 334,000 to 7.9 million in August. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.
Fighting a war and creating demand for employment since ancillary industries would find a growth in US economy is the key trigger for US. If war happen then it would damage the oil pipelines and sources of Syria which would be replaced later on by the same US and at the same time it would be able to sell its own crude at an higher valuation which would help the US treasuries later on.

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