New York, NY (PRWEB) September 20, 2012
In a recent Investment Contrarians article, financial expert Sasha Cekerevac points out that, on the surface, the latest jobs data from the Bureau of Labor Statistics show tepid job gains. However, Cekerevac reports that the data do not account for the millions who have dropped out of the labor force, meaning that the jobs market isn’t as rosy as the public might believe.
“The unemployment rate did drop to 8.1% from 8.3% the previous month, but that was due to a drop in the labor force participation rate,” Cekerevac points out.
Cekerevac further notes that the unemployment rate for people with a bachelor degree or higher is 4.1%—quite low for an economy that is barely growing, he says.
The Investment Contrarians editor notes that the Federal Reserve’s recent decision to implement additional monetary stimulus (QE3) will not bring the total unemployment rate down, as it misses the real point behind the numbers—more money is not going to help increase the education and skill level of America’s unemployed workforce.
“As much as politicians want to take credit for lowering the unemployment rate, the truth is that real jobs are created by businesses,” reports Cekerevac. “Businesses in North America are increasingly moving towards higher-valued products, which means hiring higher-skilled workers.”
Cekerevac points toward the high-paying professional technical services sector as an example. He states that the job gains could be significantly higher, but companies can’t find the people qualified for the large number of open positions.
Citing an article from Bloomberg, Cekerevac reports that firms in Michigan are desperately looking for engineers, with pay of $80,000–$120,000: “While many uneducated Americans have been unemployed for over a year, some engineers are getting multiple job offers—and in days. In fact, the huge shortage of skilled workers is actually preventing companies and the economy from growing,” he says. (Source: “Michigan
Begs for $100,000 Engineers After Auto Rebound,” Bloomberg, Aug. 15, 2012, http://www.bloomberg.com/news/2012-08-15/michigan-begs-for-100-000-engineers-after-auto-rebound.html.)
Cekerevac claims that a company-led initiative with subsidies from the government to encourage the training and education of potential employees is the necessary solution to unemployment. Until this is implemented, though, Cekerevac notes that the unemployment rate will continue to be high.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.