As a quick follow-up to our prior writing Running In Place and The Unemployment Rate, posted prior to the release, the Unemployment rate did inch over 10%, not surprising to us.
We are not trying to minimize this report, as it is very important, and psychology is extremely important to our economy. Please understand that we are in a natural slack period as companies regain their footing. It is our belief that as/if business continues to get better, slack will be taken up, and businesses will begin hiring, similar to residential housing taking out inventory of unsold homes.
Please bear this in mind as this weekend you are hit with many dramatic headlines about the double-digit Unemployment rate, as it is true, but more rear view mirror than forward-looking.
Have a Good Weekend and keep your eyes on the “Forest” ahead, not the “Trees” behind!