Job Losses are Never “Good News”

A number of media outlets, such as the AP, are reporting Pennsylvania’s June job losses of 3,400 with a positive spin, as in the “smallest monthly job loss since August.”

But that is ridiculous spin. Losing jobs is never “good news.â€?  That is like saying you lost less money gambling this month than you lost last month. 

Basically businesses that have laid off workers are laying off more – that’s not good for the economy, even if the 2nd round of layoffs is smaller than the first.  It is adding more people to the unemployed lines.

And the statistic in question net jobs, meaning more folks are being let go than hired.  Our economy needs to add jobs every month just to keep the current unemployment rate from rising. 

The trend of “fewer losses” could be indicative of then end of the worst, but it could also indicate that the economy has already shed so many jobs, it could only get gradually worse.