Ball State Economist Says Enthusiasm for Unemployment Numbers is "Misplaced"
One Ball State economist says we shouldn't be feeling too optimistic after the release of the latest unemployment figures.
The numbers released Friday show 165,000 new jobs were added in April, dropping the unemployment rate to 7.5%. Dr. Michael Hicks says while we did have a net gain of new jobs, we actually lost 276,000 full-time jobs.
However, Hicks says we gained 278,000 jobs for economic reasons, meaning people who were looking for full-time jobs but only got part-time jobs. He says we also gained 163,000 part-time jobs for non-economic reasons, meaning people looking to supplement their income.
Hicks says we should be adding 300,000 to 500,000 full-time jobs per month to work our way out of a recession. He says these numbers show any enthusiasm going into the summer is misplaced.