Here Is The Real Unemployment Story

Online, March 7, 2011 (Newswire.com) - Financial advisor Dennis Tubbergen becomes annoyed with news articles proclaiming the unemployment rate in the U.S. is getting better. Unless, of course, the articles bother to point out why the unemployment rate has seen slight improvements recently.

Tubbergen, who is a financial advisor, advisor to financial advisors, author and radio talk show host, keeps a close watch on the economy, unemployment and politics in his blog and his monthly economic newsletter Moving Markets™.

"The unemployment news was better this month - the unemployment rate officially fell to 9% from 9.4%," begins Tubbergen. "But does that mean more people are working?"

Tubbergen refers to an Associated Press article from February 5, 2011 which states the drop in those seeking unemployment benefits is the steepest two-month decline since the Eisenhower administration. The AP also reported that a half million people found work in January, but the Bureau of Labor Statistics reported payrolls gained only 36,000.

Tubbergen wants to know: Who is right?

He quotes John Mauldin from Thoughts on the Frontline dated February 19, 2011. "And that lack of optimism is showing up in very weak job growth. While January's abysmal number is likely due to weather and we should see a much better number for February, it is still not getting us the jobs we need. With governments' cutting back on employees, it is likely we will need to see as many as 125,000-150,000 jobs a month just to keep up with population growth."

Mauldin goes on to state the drop in the unemployment rate was not due to new jobs but to the "participation rate." If an individual has not sought employment he or she is not considered unemployed.

"The total number of jobs has remained approximately level over the past year or so," concludes Tubbergen. "Quite a different reality than the official unemployment rate would have us believing."

Dennis Tubbergen has been in the financial industry for over 25 years and has his corporate offices in the USA Wealth Management Building in downtown Grand Rapids, Michigan. Tubbergen is CEO of USA Wealth Management, LLC and has an online blog that can be viewed at www.dennistubbergen.com. His weekly talk show The Everything Financial Radio Show is simulcast on two Michigan metro stations and also airs to over 600,000 financial advisors, with recent podcasts available at www.everythingfinancialradio.com. Tubbergen's seminar schedule can also be viewed at the above radio link.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, no forecast should be construed as a guarantee. Prior to making any investment decision, individuals should consult a professional to determine the risks, costs, benefits and fees associated with a particular investment. Information obtained from third party resources is believed to be reliable but the accuracy cannot be guaranteed.