The U.S. economy lost 131,000 jobs, in general, in July. The private sector added 71,000 jobs, 90,000 forecasts. In addition, the government has paid more than 200,000 jobs, making a net loss so far this summer. Your investment strategy should take account of the employment relationship, because it is a big part of economic recovery.
The lack of jobs and the recruitment will continue to affect recovery. Although the unemployment rate improved to 9.5%, the actual number is probably still hovers around 20%.
Businesses continue to be reluctant to hire, especially because they do not know how new government regulations such as health care reform will affect their business. Segment of the economy that creates the most value jobs, small businesses do not know if they will be able to give the new laws will be imposed. They are waiting to see how this will affect their profitability.
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