Unemployment Trend Remains Ugly (Graph)

Savvy investors understand that the market usually bottoms and turns up long before unemployment peaks. In other words, the market discounts the bad news in advance. So it is easy to understand how the market can rally in spite of the negative unemployment report.

There has not been much discussion about the number of people that are falling off the unemployment insurance payrolls each month. Another 1.5-2 million people will stop getting checks by the end of the year. Unless, of course, these benefits are extended. Additionally, the civilian labor force is dropping or the numbers would be much worse.

We will discuss the growing number of people that have been unemployed 27 weeks or longer, and the real unemployment rate shortly.

The uptrend in unemployment is still strong as evidence by this chart.

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Bob DeMarco is a citizen journalist and twenty year Wall Street veteran. Bob has written more than 700 articles with more than 18,000 links to his work on the Internet. Content from All American Investor has been syndicated on Reuters, the Wall Street Journal, Fox News, Pluck, Blog Critics, and a growing list of newspaper websites. Bob is actively seeking syndication and writing assignments.

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