A report released by the Labor Department shows jobless rates dropping as a result of workers not searching for jobs.
The number of workers reported by the department is 600,000.
According to the department, the jobless rates could rise while the economy is recovering and more people go back to seeking jobs. Housing and manufacturing jobs were hit the hardest with the jobless rates.
Economics instructor John Sophocleus said customers are more confident with getting jobs as a result of the statistics.
"I think you saw consumer confidence go up a little bit," Sophocleus said. "We got the programs now that are continuing the bubble like cash for clunkers. As long as you keep prolonging the distortion, you can get numbers to not look like what they should."
The unemployment numbers look good because jobseekers don't have any incentive to look for a job.
"Unless it has changed, when workers no longer receive unemployment insurance benefits, which also often reduces the incentive and resources to continue the search, they are no longer reported as unemployed," Sophocleus said. "Furthermore, those who were and want to be full time employed are not counted as they accept part-time employment also make the numbers look lower than they would if reported otherwise."
Besides losing confidence, there are other reasons why people stop seeking jobs.
"The one that nobody wants to talk about is just flat out discrimination," Sophocleus said. "Minorities are discriminated against and single moms get wacked big time. In a perfect competitive world, that stuff is not going to happen because you're not going to get away with it. Unfortunately, connections and discriminations are real."
Sophocleus said uncertainty is a major reason why job markets are not stable.
"Markets hate uncertainty," Sophocleus said. "We are living in a very uncertain marketplace right now because folks don't know what's going to be in play and what's not going to be in play. Until this market and the people who are in it whether on the demand side or the supply side see more certainty, it's going to be tough."
Career counselor Katie Mantooth said the Career Development Services has ways to help students combat the unemployment rate.
"We help students prepare their resumes, their cover letters so that their competitive marketing pieces are not just a list of everything you happen to have done over the last three to four years," Mantooth said. "We help them develop networking strategies and we help with general job search strategies."
Mantooth believes some graduates have difficulty seeking jobs.
"If it is difficult, some of it may be that the student hasn't decided what they want to do," Mantooth said. "So, in seeking jobs, they're either not doing it passionately or even if they find opportunities, they don't relate well to them. So they don't take those opportunities."
Students who search for jobs give up because they are discouraged from rejection.
"I assume that some students give up because the job search is hard work and they think that as it has happened before, their parents will fix it," Mantooth said. "I think some, especially those who have been incredibly successful in the past, get depressed or disheartened when they meet rejection for the first time, and they just quit because that feels better than defeat. On a positive note, however, some quit because they realize they don't have the experience and/or academic background needed to get to the job they want, and they redirect by applying to graduate school."
Mantooth said graduating senior should start job search as soon as possible.
"The average job search takes about six months and that may be longer," Mantooth said. "When the economy is great, it may be like three to six months, where in a tough economy it may be six to nine months."
David Strickland, president and owner of Management Recruiters of Auburn-Opelika, said one of the causes of the unemployment rates is companies cutting back on finances.
"The general economic decline has resulted in many companies cutting back their staff so they can try to not lose money during this time when people are not buying their product," Strickland said.
Strickland's company has a role in helping people get a job.
"Our focus is more on services we provide for the people who are seeking to hire people," Strickland said. "We do develop relationships with people who have the kind of skill sets that our clients value."
According to the Bureau of Labor Statistics website, Alabama's unemployment rate is 10.7 percent. The unemployment rate for the Auburn-Opelika area is 8.6 percent.
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