Unemployment Now At 9.7%. So, What's Keeping the Stocks Rising?
September 04th, 2009
The Dow ended Friday in positive territory again even after a report showing the new unemployment rate had risen to 9.7 percent. The bad news didn't seem to have much effect however, as many analysts were predicting the unemployment rate to worse than reported.
The report issued from the Labor Department showed a slower than expected pace for losses last month. Even though the unemployment numbers are now the worst since 1983, the report is leaving many with optimism about future reports.
Employers eliminated nearly 216,000 jobs in August which is down nearly 30% over July and over 10% than numbers from June. Things are getting better. Or are they?
As long as job losses remain this high many believe that average Americans won't feel comfortable about spending money. Even though the market is still on a multi-month rally, the unemployment numbers are still the main concern for a true economic turnaround. Most believe that unemployment numbers aren't likely to get better anytime soon. As the Government continues to dump money into the economy employers are continuing to let people go.
However, if the current decreases in unemployment numbers continue, the economy could begin to see improvement by the end of the year.
