Unemployment Numbers Rise Again in September: closer look at unemployment numbers & new workers trying to enter job market

Grand Rapids, MI, October 14, 2010 (Washington Bangla Radio / I-Newswire) - Recent headlines across the country proclaimed further job losses in the U.S. for the month of September. According to a brief article in The New York Times that same day, most economists expected the latest ADP National Employment Report to reflect some 18,000 new jobs instead of a loss of 39,000 jobs.

Dennis Tubbergen, CEO of USA Wealth Management, LLC, a federally registered investment advisory company, keeps a close eye on many topics of interest in his financial blog and his monthly newsletter update Moving Markets. Unemployment numbers for the U.S. remain one of his primary concerns, an area Tubbergen ties closely to the equally hard-hit housing market.

The article claims that the deceleration of employment occurred in all the major sectors observed and for all payroll sizes, and ‘confirms a pause in the economic recovery already evident in other data.’

The ADP report went on to state that although September’s decline follows seven months of small advances in employment, there is simply no momentum in the creation of new jobs.

That statement is concerning on its own.

But, according to Tubbergen, there is another variable to be considered: The number of new workers entering the labor force each month. Economists have been stating for the past several years that it takes the creation of about 150,000 new jobs a month just to break even with population growth. Tubbergen also forecasts the housing market to bottom out in 2012.

Some economists are starting to agree with these at least short-term gloomy forecasts.

Also on October 6, 2010, the The Times quotes Jan Hatzius, chief economist at Goldman Sachs, as writing in a client note that he sees two possible economic scenarios for the next 6 to 9 months. A fairly bad one in which the economy grows at 2 percent or less and unemployment rises to 10 percent, and a worse one in which the U.S. returns to an ‘outright recession.’

For more information on Dennis Tubbergen’s views, visit www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of Washington Bangla Radio or USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.