Unemployment hits 8.5% - highest in 25 years

[dgsevier]

The unemployment numbers are out. Up 0.4% from previous month (8.1% to 8.5%) I don't think they are too surprising.

Isn't unemployment usually considered a "lagging" indicator as opposed to a "leading" indicator? In other words, aren't these figures usually used to confirm what is already shown by other data?

 

[traderx]

The unemployment numbers are out. Up 0.4% from previous month (8.1% to 8.5%) I don't think they are too surprising.

Isn't unemployment usually considered a "lagging" indicator as opposed to a "leading" indicator? In other words, aren't these figures usually used to confirm what is already shown by other data?

Yes.

 

[dgsevier]

Yes.

Since it's a lagdicator (I just made that word up) hopefully it won't have as serious an impact on today's markets. I did enjoy yesterday's little sucker rally and I hope it can continue.

 

[30ashopper]

There are leading indicators in the employment data like temp help, which is still declining. That implies we are still contracting, which makes perfect sense really when you think about it. The BLS numbers will also be revised downward in the coming months, so unemployment is probably around 9%.

With 5 million people out of work, another 9 million cut to bare bones / part time help, and the work week now down to 33 hours as employers cut back hours, the worst of this thing (me thinks) is still ahead of us.

Of course, as it was in the depression, if you have a good job, it really isn't going to be all that bad.

 

[Smiling JOe]

...and UNDERemployment is around 15% currently. Underemployment includes people who are working, but not getting enough work. eg- a full time employee is cut back to working part time due to employer cutting hours.

Even those people who are still working, are on average, getting paid less and taking on more responsibilities, so the money they earn is less than they have earned in the past. All of this is happening as food prices continue to rise, with food packages shrinking in size. Gas prices have also shot up 10% in the last two weeks.

I thought Obama's promise was to create (then changed to "keep") 5 million jobs. It must have been opposite day when he made that political promise.

 

[JCochran]

I thought Obama's promise was to create (then changed to "keep") 5 million jobs. It must have been opposite day when he made that political promise.