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Unformatted text preview: Joseph Arabbo Professor Tracy WSJ Article July 4, 2010 Why Did the Unemployment Rate Drop? Summary To summarize, this article, in the July 2 nd issue of the Wall Street Journal, talks about the recent decline in the unemployment rate (from 9.7% to 9.5%) and the reason for this strange occurrence. The unemployment formula, by definition, is the number of people who are out of a job, but still actively looking for employment. This month, the decline in the civilian work force was the largest we have ever experienced since 15 years ago. The number of dislocated workers have sharply increased as of recently—this number amounts to approximately one million people. This may be due to people giving up searching for a job, pursuing continued education, or other personal reasons. A combination of events has occurred simultaneously to result in the decline in the unemployment rate. The first: 125,000 jobs were cut. The second: the US population grew by 360,000 in two months. As a result, quoting from the article, “…people giving up hope and leaving the job market offset that need for...
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This note was uploaded on 06/29/2011 for the course FIN 322 taught by Professor Zhu during the Spring '11 term at Oakland University.
- Spring '11