Jobs Evaporate

I had a look at jobmonkey.com and came across this scary statistic from a march 6th post. The Bureau of Labor Statistics, which keeps track of many statistics including wage rates, GDP, and GNP recently measured the unemployment rate to have reach 8.1%. This is a serious problem for several reasons that will only further this recession.

Heres the scenario: 8.1% is the greatest the unemployment rate has been in the last 25 years(unemployment rate is the number of unemployed people divided by the labor force which is comprised of all those who are working, and those who are eligible for work but are not). When when unemployment rate goes up, GDP goes down(GDP is the total output of our economy, in simple terms our profit via domestic products and services). And when GDP decreases we move into a deeper trade deficit because we are importing more and exporting less. Now its important to clarify that trade defecits are not necesarily bad financially, but they are bad in the sense that the demand for human capital is leaving this country. When human capital(human utility for profit, like ones education) leaves the country, jobs leave the country. When Jobs leave the country the unemployment rate goes up.

It is a nasty cycle that we have found ourselves in. Easy to describe, but hard to solve.