Saturday, December 5, 2009

The surprising new Unemployment Numbers!

The new unemployment numbers surprised the economists and all the doomsayers as economy shed only 11,000 jobs bringing down the unemployment rate to 10 percent. The administration must be happy about that. It shows that overall the economy is on the mend. But we will have to see a trend of two to three months before we can be sure that we are out of recession. But now here is the deal, is the new unemployment rate really real or is it masking the fact that many people have become discouraged and simply dropped out of the picture.

Since most of the market look to the government for the unemployment figures, we will assume that the figure must be correct. There can also be another thing that may be hiding behind these numbers. The fact that there aren’t many workers left to fire. The remaining workers are being squeezed to do more by taking up the work of the laid off workers. The future will tell us if that is the case but for now we should start partying like the recession is over (although we are not quite of the woods yet).

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