Unemployment Rates, Not Rising Stock Prices, Indicate Status Of Economic Recovery

Employment | November 23, 2009 at 1:19 am

Increased customer spending capacity, and rising stock market values might be indicative of a recovering economy, but many feel that unless the employment scenario improves in the US, you really cannot think that the recession is over. It is found that 70 % of Americans feel that the percentage of employment is the real indicator of economic recovery. Only 30 % feel that rising stock market values indicate a recuperating economy. Given the rise in the rate of unemployment in the recent months has made the percentage of unemployed people in the US around 9.8 percent, which is high, do you think the economy id really recovering?

Investors need to be assured of profitable returns when making investments. The present unemployment scenario which is indicative of a still-vulnerable economy is hardly assuring for the investors. They are not prepared for making investments till the employment rates in the country improve. About 43 % of investors feel that an unemployment percentage of not more than 7% can motivate them to take the risk in making investments. If that looks quite improbable rate of unemployment in usa in the present scenario, hear it from 48 % investors who feel that the unemployment rates should touch 5 % or lower than that for them to feel confident that the recession is really over and economic recovery is on way.

When it comes to considering employment rates as the most important factor indicative of the recession recovery, both the rich and the poor are unanimous. 30 million households feel that employment rates are the primary indicative factors of the economic growth of the United States after the recent economic depression. Many of these people had made investments during the recession last year and had lost quite a lot of money during the crisis. On an average, investors lost about 30 % of their investments in the crisis. Those people who savings in banks had suffered more than those who did not have any. The financially well-off lost a lot of their assets in the crisis though their net worth was not affected much. But if you are an investor let not the plight of others affect you. Always assess your personal financial situation, the market pulse and the current employment percentage before thinking of making any investments. Always go as per your risk tolerance levels. Do not get carried away by the advice of others unless they are sufficiently knowledgeable and experienced. The rate of unemployment is expected to decrease in the coming months. You have to view the status of your investments when the rate of investments drops. As the rate of unemployment is still high in the recent times, you cannot expect investors to start making investments right away.

Employment rates indicate the spending capacity of company owners. If they do not have the capacity to hire people, they do not have enough finances and this does not reflect a good economic status.