So today the jobs report has shown there to be an increase in unemployment claims and job losses are declining. Does this mean the economy is going down? No it doesn't. This is one of many indicators that appear in the news that help us to understand the path of the economy and its overall health. Overall the indications are that the economy is in recovery mode. Spending is slowly increasing, but hiring is going to lag on till the last possible moment. Take a look at productivity, it has increased because companies are filling orders but not filling seats at the office. They are taking a wait and see approach to confirm the recovery can be sustained. Everyone is doing that. Hiring will pick up toward the end of the recovery process and is the last sign of strength. Job losses are declining as companies stop laying people off, but they aren't hiring... yet. It will come in time.
So be patient and accept that a recovery doesn't happen overnight. And don't take every economic indicator as the sign of the future. No single aspect can determine the whole health just as you can't see painting by only looking at the shades of blue.
-Uncle Walter
I really like your advice. I don't need an accountant now.
Posted by: Olivia | September 04, 2009 at 10:51 PM