While the September unemployment rate reading is encouraging, it’s still well below the record unemployment rate of 3.8% in April 2000. That was largely driven by the boom in technology hiring during the Internet explosion and subsequent bubble.
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New York, NY (PRWEB) October 18, 2012
According to George Leong, contributor to Profit Confidential, the recent jobs readings offered much-needed hope that job creation in America was back on track, with the recent unemployment rate reading just below the eight-percent threshold. Although unemployment in September came in at 7.8%—the lowest reading since December 2008—Leong notes that this report signals only a start for jobs growth, as there is plenty of work ahead for President Obama or Mitt Romney, whomever gets elected.
In the article “Why the Jobs Picture Is a Long Way from Full Recovery,” Leong points out that the unemployment rate has improved from the recession high of 10.0% in October 2009, which was the highest level since the 10.8% during the December 1982 recession.
“While the September unemployment rate reading is encouraging, it’s still well below the record unemployment rate of 3.8% in April 2000,” says Leong. “That was largely driven by the boom in technology hiring during the Internet explosion and subsequent bubble.”
The problem that Leong continues to see is that the number of officially unemployed persons stood at a stubborn 12.1 million in September.
Moreover, Leong points out that there’s still a question of quality versus quantity. The quality of the jobs being created continues to be a sore spot with Leong, who argues that the low-paying jobs being created in the food service sector do little to drive the economy.
Leong concludes that the U.S. needs to see the creation of higher-wage jobs to really add a boost to consumer spending and GDP growth.
Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market... before it plunged.
Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.
Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.
Michael Lombardi, MBA, the lead Profit Confidential editorial contributor, has just released his most recent update of Critical Warning Number Six, a breakthrough video with Lombardi’s current predictions for the U.S. economy, stock market, U.S. dollar, euro, interest rates and inflation. To see the video, visit http://www.profitconfidential.com/critical-warning-number-six.