The Bureau of Labor Statistics reported this morning that the U.S. economy created 157,000 jobs during January. The U.S. unemployment rate went up to 7.9% in January from 7.8% in December of 2012. Now, this is very important and I want all my readers to know about it… The Bureau reported that the underemployment rate (which includes people who have given up looking for work and people who want full-time jobs but who can only get part-time jobs) was at 14.4% in January—the same rate it was way back in November 2012 (seasonally adjusted). To me, this shows absolutely no improvement in the unemployment situation in this country! And jobs created in the U.S. economy continue to be in the low-paying retail and service industries. Job growth in the low-paying sectors! In February of 2010, the unemployment rate for the wholesale and retail trade sector was 10%. By December of 2012, it declined to seven percent—that’s where the jobs are being created. (Source: Federal Reserve Bank of St. Louis, last accessed February 1, 2013.) The jobs market in the U.S. economy is tormented. For the year of 2012, the average monthly jobs growth was 181,000. But, as most economists will tell you, the U.S. economy needs jobs growth of 250,000 per month for the economy to see any improvement. (Source: Reuters, February 1, 2013.) It’s obvious there are still many troubled spots in the jobs market of the U.S. economy. If they are not fixed soon, they will drive the U.S. economy into further deterioration. It is startling to know that 38.1% of all those unemployed in the U.S. economy have been without work for 27 weeks or more. If this goes on for much longer, the U.S. economy will go through another set of troubles. A couple of days ago we learned that the U.S. economy actually contracted in the fourth quarter of 2012 for the first time in three and half years. As I write below, consumer confidence is breaking down to 2011 levels! But let’s not fear; the stock market is rising (I’m being sarcastic, of course). Michael’s Personal Notes : Consumer confidence should be followed closely, as it gives investors an idea about consumer spending and where the U.S. economy might be heading. When consumer confidence rises, it means U.S. citizens feel good about spending. Consumer spending accounts for about 70% of U.S. gross domestic product (GDP). Unfortunately, consumer confidence in the U.S. economy is plummeting—the last thing you want to see when you are looking for economic growth. U.S. consumer confidence fell drastically in January. The Conference Board, which tracks the Consumer Confidence Index by conducting a monthly survey, reported that ... Read More