Unemployment is at Record Breaking 9.7%

The end of the recession is confusing. The unemployment jumped to 9.7% a 26 year high while the actual numbers is falling only 216,000  versus 276,000 positions eliminated  in July. What does this mean? The nation may be at the end of the recession. Employers cannot  reduce the workforce  any further without reducing quality.

The the job number may also portend the economy is still weak which may affect consumer confidence and spending. This is bad news in considering this his back to school season which leads to the Halloween and Christmas/Hanukkah/Kwanza season which the retailers depend on to make a profit (0r loss).

There is a bright spot is jobs are being found are in health care.

Stephen Stanley of R B S  Securities  says the employment report,  “strengthens our conviction of a relatively upbeat economic outlook,” But said, “it was not far enough away from expectations to change the views of either optimists or pessimists.”

This report will continue dog the White House on the belief the stimulus plans working despite the number of people unemployed.

Wall Street Journal

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