WEEKLY UPDATE FOR 10-7-2011

     I have written extensively that our economy must add 200,000 jobs per month.  We need 100,000 jobs per month to replace the 8,000,000 jobs lost in the Great Recession plus an additional 100,000 jobs per month to absorb new entrants to the workforce each month.
     Jobs growth is a by-product of growing the goods and services we create in our economy, i.e. our Gross Domestic Product (GDP).  Our GDP must grow at 3% per year to create the by-product of 100,000 jobs per month and 5% per year to push the current unemployment rate down by just 1%.  Our current annualized GDP growth rate is 2.1%. 
     Do the math and the conclusion is crystal clear:  Until the economy grows at 5% or more per year, the unemployment rate is not going to trend down! 

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