The Skinny on the Recession or Recovery
Expert: The National Bureau of Economic Research (NBER)
NBER has a group of economists who come up with the numbers and report the beginning and end of a recession. Failure to survive for two consecutive quarters is called recession which is 1.5% bad but NBER think that recession is almost over.
There are disputes on double-dip recession. It’s a period of recession; an improvement proceeded by another period of recession. It’s not recognized by the NBER but it’s identified as two periods of recessions and the possibility of such is yet to be agreed upon.
Need-to-know: When NBER says it’s done, it’s done no matter when it started.
Numbers: $837 billion and 6.4 percent
Most people save nowadays. Companies in the non-financial area have rat holed $837 billion according to the S&P 500 index. The figure is two times higher than cash holdings ten years ago.
Consumers saved 6.4% from their income for security making it the highest rate for savings in a year.
Need-to-know: Spending stimulates the economy, hoarding doesn’t
The Skinny on Unemployment Rates
Numbers: 3, 6, 9.5, and 131,000
July was rather an unfortunate month for 131,000 workers and only 71,000 jobs was added blocking the unemployment rate to its usual percentage which is 9.5.
Job vacancies depend on your locations. There are nine states that produced a useful change in the employment rate since May to June of this year according to U.S. Bureau of Labor Statistics (BLS).
Need-to-know: “Location, location, location”
Expert: John Ryding, Chief Economist, RDQ Economics
He says that too many workers must be hired to change the rate of unemployment. A monthly hiring of 300,000 people is needed to decrease the percentage to 5.
Need-to-know: High unemployment rate is sticking around
Numbers: 0.9 percent
The numbers regarding productivity stayed strong for five quarters but it’s going to a downward trend of 0.9%. Cost-cutting is the best option for companies while enduring employees work harder. Too much pressure on the labor force greatly affects productivity; a hindrance to future employment growth.
Need-to-know: Decreased productivity is good
There’s conflict between the numbers and different expert opinions but everyone agrees that competition is tough when many are unemployed. When job-hunting, know where to find it, and make a wise prediction on the things to expect.