U.S. Approaching Record Levels of Unemployment Despite Positive Job Numbers, According to Leading Financial Newsletter Profit Confidential

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On the surface, the headline U.S job numbers seemed positive, showing that the American economy created 163,000 jobs for the month of July, when economists were expecting 100,000 jobs. According to Michael Lombardi, lead contributor to Profit Confidential, the bad news is that more people gave up looking for work, as the unemployment rate rose slightly from 8.2% to 8.3% and the number of people considered long-term unemployed was unchanged at 5.2 million.

U.S. Approaching Record Levels of Unemployment Despite Positive Job Numbers, According to Leading Financial Newsletter Profit Confidential

U.S. Approaching Record Levels of Unemployment Despite Positive Job Numbers, According to Leading Financial Newsletter Profit Confidential

“This means 86.8 million people were not included within the job numbers,” says Lombardi. “As a result of no improvement in these measures within the job numbers, the U6 unemployment rate increased.”

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On the surface, the headline U.S job numbers seemed positive, showing that the American economy created 163,000 jobs for the month of July, when economists were expecting 100,000 jobs. According to Michael Lombardi, lead contributor to Profit Confidential, the bad news is that more people gave up looking for work, as the unemployment rate rose slightly from 8.2% to 8.3% and the number of people considered long-term unemployed was unchanged at 5.2 million.

In the article “Number of People Not Working Hits Second Highest Level Ever Recorded,” Lombardi says what is most startling in the report from the Bureau of Labor Statistics is that the number of people not counted within the labor force increased again to its second-highest reading ever recorded.

“This means 86.8 million people were not included within the job numbers,” says Lombardi. “As a result of no improvement in these measures within the job numbers, the U6 unemployment rate increased.”

U6, as reported by the Bureau of Labor Statistics, is a broader measure of the unemployment rate, because it takes into account discouraged people who are still looking for work, as well as those who are working part-time but want full-time work.

“The U6 unemployment rate rose to 15.0% in July from June’s 14.9%,” says Lombardi.

Lombardi believes that for the U.S. economy to show any improvement, the U6 unemployment rate within the job numbers must improve; instead, it has been deteriorating steadily since February of this year, he reports.

The labor participation rate measures all people in the working age population (from ages 16 to 64) who are actually employed.

“In April, this rate fell to its lowest level since December 1981: 63.6%,” says Lombardi. “It is dangerously close to challenging its record worst levels.”

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.

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