Some people actually got jobs in November!

Numbers on unemployment for November have been released, and it turns out that unemployment actually went down last month, falling from 10.2 percent in October to 10 percent for November.

Of course, this might be just because of seasonal employment, but I suppose we have to take whatever we can get. It’s widely known that optimism will help the economy more than anything, because confident consumers spend more money. People are also much more likely to get payday cash advances if they know their jobs are secure.

The bad news

Unfortunately, while the overall number of unemployed Americans fell in November, the number of Americans who have been unemployed for at least 27 weeks (more than six months) increased. Luckily the legislation passed last month that extends unemployment benefits should help some of these people out.

Usually, unemployment rises in January as people who had taken temporary jobs over the holidays go back to being unemployed. Also, many companies do layoffs in January after they see their budgets for the previous year.

Not black and white

Of course, though the falling unemployment rate is indeed great news, it doesn’t give us cut and dry answers about where the economy is headed. This little upturn in employment could be simply circumstantial. Experts have been saying for months that unemployment would be one of the last economic factors to change after the recession ends. It’s surprising, therefore, to see a reduction in unemployment now, and it’s very possible that unemployment will go back up or possibly get worse in 2010.

The unemployment numbers have fluctuated a lot this year, but one thing is for sure: They’ve been bad, bad, bad. In December 2007, before the recession began, the national unemployment rate was only 4.9 percent, which is normal. Even at its new, lower rate, unemployment is still more than double that. Once more people start getting jobs, those people will start spending money. Of course, people need to spend money in order to create more jobs.

Image from Flickr.

The ridiculously high national unemployment rate (9.8 percent) has convinced Congress to consider a bill that would allow people to collect unemployment for an additional 13 weeks. However, an unemployment extension of three months might not be long enough for many people.

CNN Money reports that the job market will get better — in a year or so. Actually, the forecast says it won’t be until summer of 2012 that employment is back up to normal rates. Though people are starting to apply for auto loans again and spend a little more, the unemployment situation is not getting any better, and in many places it is actually getting worse.

How do they know?

The recession is crawling to an end as reports show the economy actually grew last quarter. Still, it’ll be a long time before there are enough jobs to go around. CNN explains:

Jobs are what are known as a trailing or lagging indicator, meaning that they change in response to other economic events, rather than predicting changes the way a leading indicator, such as the stock market, does. That’s because even after a recession has ended, employers are slow to add staff until they’re sure that demand has returned.

The article from CNN also points out that the last two recessions we’ve had were followed by a “jobless recover,” and this one probably will be, too.

When is unemployment extension vote?

Though the unemployment extension legislation has already passed the House, there is not a vote scheduled for the Senate yet, which is bad news for people whose benefits will be running out soon.

The length of time a person can collect unemployment is different in different states, but anyone who is on unemployment right now most likely will not be able to continue collecting their checks until the summer of 2012, even if Congress does pass the unemployment extension.