Here’s the problem with an improved jobs market

Author: Jamie Coleman | Category: News

Author: Jamie Coleman

We could have improvement in the employment situation and a rise in the unemployment rate at the same time.

Why? Because discouraged workers who quit looking for work restart the job hunt, which raises the participation rate. The higher the participation rate without an increased pace of new hires leads to jump in the unemployment rate…The participation rate is historically quite low, so unemployment rate is unlikely to drop sharply in the months ahead.