U.S. Added Jobs in October - But Not Enough

Online, November 11, 2010 (Newswire.com) - According to an article in The New York Times on November 6, 2010 the U.S. added jobs for the first time since May. While private firms have been adding employees (albeit at a fairly slow rate), those numbers have been highly diminished by the elimination of Census jobs and other cutbacks by state and local governments.

But as financial advisor Dennis Tubbergen explains in his blog and his monthly financial and economic newsletter Moving Markets, consideration has to also be given to the number of individuals entering (or attempting to enter) the job market for the first time.

Tubbergen is CEO of USA Wealth Management, LLC, a federally registered investment advisory company. Tubbergen has long claimed that unemployment in the U.S. is closely tied to other worrisome economic issues, such as the housing market. According to Tubbergen, economists have been stating for the past several years that it takes the creation of about 150,000 new jobs a month just to break even with population growth.

Tubbergen points to a Bloomberg Businessweek.com article posted online July 15, 2010 in which Peter Morici, a business professor at the University of Maryland in College Park, is quoted as saying, "To make a dent in the unemployment rate, you need to go over 150,000," in new jobs per month.

The Times article noted above goes on to state nearly 15 million Americans are out of work and actively seeking employment, keeping the U.S.'s unemployment rate at 9.6 percent.

If one includes individuals working part-time because they cannot find full-time work and those have become so disenchanted they have stopped seeking a job, the unemployment rate is a shocking 17 percent.

"While any report of increased employment is good, increases of this size are the equivalent of using the proverbial garden hose to douse a monster wildfire," concludes Tubbergen.

For more information on Dennis Tubbergen's views, visit www.dennistubbergen.com.

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.