The Unemployment Rate Continues To Fall

Unemployment Rate Falls in January

As the unemployment rate takes a marked dip for the second month in running as per January’s figures, there is cause for rejoicing across the U.S. However, the news could be better, according to economists, who fear that the dip may just be the precursor to a slow increase in the number of unemployed in the coming months.

The latest report from the Government shows that from the 9.8% unemployment rate in November 2010, the figure dropped to 9.4% in December and further dipped to 9% in January. The declining rate has encouraged optimism about employment prospects across the country. But there is another side to the story that is not quite as heartening.

Yet another survey has revealed that only about 35,000 new jobs were added last month. Given that the falling unemployment rate represents nearly 600,000 newly employed people, the two findings are not consistent. Economists are still trying to correlate these two contrasting pieces of information to understand what it all means for the job market.

While a cautious approach from independent analysts is not surprising, it is definitely food for thought that even White House officials are toeing a ‘wait and watch’ approach instead of advertising the declining unemployment rate. In fact, economists at the White House have categorically stated that the figures need to be studied with care before any conclusions are made.
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Unemployment Likely to Play a Big Role in Determining Elections Outcome

As the unemployment rate continues to hover at undesirable levels, analysts are of the opinion that this will play an important role in determining the fate of upcoming elections. The current recorded unemployment rate of 9.7% is appalling, even if the recent recession is taken into account.

Post recession, analysts are still trying to understand why the unemployment levels dropped to these dismal depths even though the predictions made earlier showed slightly better prospects for the jobs market during the worst of the recession. [Read more…]

Unemployment Rate May Impede Economic Recovery

Even as some analysts hail the end of the global economic slowdown with the stock markets gaining momentum, the 10% unemployment rate, one of the highest in decades is a worrisome issue and certainly does not support the positive outlook. [Read more…]

Unemployment Tax Benefits that You Should Be Aware Of

Paying taxes is never pleasant, and the experience can be even worse when you are unemployed and trying to hold on to every dollar of your savings. But by judicious tax planning and careful application of the rules on deductions, you stand a good chance to get some much needed savings while filing your taxes. [Read more…]

Interest Rates Could Remain Low for a Long Time

All indications are that there would not be any serious interest rate hikes in the near future. The unemployment rate is still quite high and there is no hint of inflation rearing its head. These should be good enough reasons for the Fed to keep interest rates low for a long time, and the view is supported by many monetary policy makers and prominent economists. [Read more…]

Average Hourly Wages Have Risen by 1.9%

There is some good news for the economy. Even though the unemployment numbers have not shown a positive trend for a long time now, the wages are steadily rising, getting more money into the hands of consumers.

According to the recently released government’s monthly job report, the average hourly wages have risen by 1.9% over the past one year. In another analysis done by TrimTabs Investment Research, it was found that the wages and salaries have grown by 0.7% in February compared to the same period last year. [Read more…]