FORTUNE -- U.S. companies modestly added jobs in August, easing concerns that the nation might slip back into a recession. The latest jobs report released by the Labor Department today is better than expected. Employment in the private sector rose by 67,000 payrolls, after a revised 107,000 increase in July that was more than originally estimated. The report immediately sent stocks rallying, despite the fact that overall employment dropped and the unemployment rate climbed to 9.6% from 9.5%, as more people actively searched for jobs.
The report is neither good or bad news. It will certainly take a while before unemployment falls to pre-recession levels. Adecco (AHEXY), the world's largest temporary employment company by sales, knows all too well the rough road workers have traveled throughout the recession and into the nation's slow economic recovery. The Zurich, Switzerland-based company's profits suffered last year but have bounced back this year -- it reported a second-quarter profit of 97 million euros (about $127 million) following a loss of 147 million euros ($188 million) during the same period last year. Revenues increased by 29%.
This is good news for the economy. Unemployment rate goes down means more and more people get jobs. They can make profits for the economy and help the economy recover from recession.
ReplyDeleteEven though the unemployment rate increased by 1% the fact that more jobs were created is good news, that is what the economy needs and they need to hear that fact not just that the UR got worse, because that might cause consumer confidence to decrease and we really do not need that.
ReplyDeleteI also think that the unemployment rate will continue to rise, due to many of our servicemen returning home. They will be actively looking for employment soon.
ReplyDeleteYou have a strong point. Those who currently are fighting oversees (if I'm correct) aren't counted in the potential labor force and therefore when they return from active duty, they can seriously skew the unemployment rate.
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