Bad News – Unemployment is Rising. Good News – Light at the end of the Tunnel?

by Laura Ehrenberg-Chesler on March 24, 2009

in Investment Strategies

The unemployment numbers have been bleak.

More companies, large and small, are laying people off.

But, unemployment statistics are a lagging economic indicator. In a recession or severe economic slowdown, companies cut costs anywhere they can before they lay off workers.

Empoyers reduce technology and capital equipment expenditures first. This would indicate that the current recession probably started over a year and a half ago. And, while it is difficult to predict when it will end we are certainly closer to the middle of the cycle than the beginning.

Therefore, we are closer to seeing some light at the end of the tunnel.

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Job Losses Continue to Rise | Crossvault Blog
April 3, 2009 at 4:35 pm

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