Money And Investing  -

Lets Get a Job!

03 02 06 13 15

-------- Right Market Conditions

Today, the government announced that unemployment rate fell to 4.7% during January, versus a 4.9% on December. The stock market got scared and fell today, expecting a future surge in wage prices -- the one we just got was mild in comparison to what could be feared. Of course, the government and the industry will try to control wages rise in an effort to contain inflation and production costs, but one thing is for sure:

He/She who has invested AND is working will win no matter what: either he/she will get a better salary or a better job, or the increased workforce will produce more products and services to feed their investments. At a minimum, the right time to do some job hunting is here or almost here.

Sure, the unemployment rate could get even better. During the .com bubble it went all the way down to 4%. Salaries where increasing so fast that if you waited a year on your current job you would have started noticing the intern earning more than you did. And we also remember the days when unemployment went all the way up to 6%, just after September 11th 2001. I would rather see the unemployment rate close to 4% than to 6%, even when I do not really want to see an overheated economy like the one we had on the .com. I certainly want to see a long era of moderate growth.

Some things are interesting to note from the unemployment rate. It is a rate based on surveys that the government does. These surveys ask people if they are looking for a job or not, and based on the responses they calculate the main number. If you click on the above link, you will sure find more interesting data that gives you a lot of details about our nation's current unemployment situation. I may want to do a more in depth article on them at a later time, but I could not resist celebrating the unemployment rate drop. Hurray!!!!

The currency markets also have gained confidence in the US Dollar and bought it a lot.  Low unemployment, low inflation, and high domestic product increase confidence on a country and on its currency:  makes me richer when I travel abroad.