Finance Expert and Founder of J.S. Oliver Capital Management, Ian Mausner, Offers Opinion On Recent Employment Rate Numbers

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The Labor Department job market research recently showed a large drop during the month of August in the share of Americans who are either working or looking for work, showing that the labor force participation rate was at its lowest level since 1978. Finance expert and founder of J.S. Oliver Capital Management, Ian Mausner, offers his opinion regarding the release of recent employment rate numbers and how it will affect the economy.

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Any single month’s number is not especially significant. What is significant is that the US economy as well as the Eurozone is growing and recovering which bodes well for stock prices.

While some experts continue to claim that the economy is improving, the recent employment rate numbers and other current statistics are leaving American citizens a little unsure. Expert and founder of J.S. Oliver Capital Management, Ian Mausner offers his opinion regarding the release of recent employment rate numbers, explaining why these numbers are not especially significant in analyzing economic growth.

According to the Bureau of Labor Statistics, the United States economy added 169,000 jobs to non-farm payrolls in August while the unemployment rate dropped to 7.3 percent, the lowest since December 2008. Although that was an improvement from 104,000 jobs added in July, it was also slower than the average pace of job growth over the last 12 months, and missed economist expectations.

The Department of Labor's market research also recently showed a large drop during the month of August in the share of Americans who are either have a job or are looking for work, showing that the labor force participation rate was at its lowest level since 1978. Currently, only 63.2% of Americans participate in the labor force. However, this doesn't necessarily mean that the economy is not gradually recovering.

"Any single month’s number is not especially significant," said Ian Mausner, finance expert and founder of J.S. Oliver Capital Management. "What is significant is that the US economy as well as the Eurozone is growing and recovering which bodes well for stock prices. It also means interest rates will continue to gradually normalize which means a 10 year in the 4-5% range up from a recent low of 1.6%. Inflation is well-controlled and won’t be a concern for at least a year and the US economy is producing new jobs at a rate of approximately 200,000 a month which is slow by historical recovery standards, but which will gradually reduce the unemployment rate and will continue the slow growth scenario."

About Ian Mausner
Ian Mausner is an expert in finance, as well as the Co-Founder, Chief Executive Officer and Senior Portfolio Manager for J.S. Oliver Capital Management. For more information, visit his personal website here: http://ianmausner.com/.

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