Saturday, August 08, 2009

Unemployment Improves Ever So Slightly

New unemployment figures improved slightly in July to 9.4% from 9.5% in June. However, at the same time it should be noted that the economy still continues to lose jobs. Two different surveys conducted by the Labor Department are the reason the two figures do not necessarily match each other.
And statistically, the figures probably are not really significant in measuring slight differences, but rather in indicating long term trends. So in reality, the figures may not indicate an actual declining unemployment trend as of yet.
But some controversial programs such as the Cash For Clunkers have boosted motor vehicle sales by a quarter million units recently, which may signal some possible improving employment trends in the automotive sector.
Generally employment figures tend to be a lagging indicator of economic improvement, so even if the business sector should witness some improving trends, such as improving sales or stock prices, unemployment is still likely to lag as much as six months behind these factors.


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