What is the "Real" Unemployment Rate?
On the most recent Jobs Report, the US Department of Labor stated that the unemployment rate for June was down to 6.1%. Seeing that 5% unemployment is considered to be full employment, 6.1% looks appealing, right?
Let’s dig deeper to accurately understand what this percentage signifies. The true definition of unemployment is when a person who is actively searching for employment is unable to find work. However, a number of economists look past the "main" unemployment rate to a different figure the Bureau of Labor Statistics calls "U-6". The U-6 rate covers the unemployed, the underemployed and those who are not looking but want a job. This rate for the month of June was 12.1%. So, which rate depicts the real unemployment rate?
Some measures to consider would be:
• The Fed's Easy Money Policy coming to an end
• Rising inflation
• Rising taxes
All of these aspects control how you can create a secure income. While we cannot predict the future and whether the current economy can sustain at its current level, we can help you be better prepared. Your retirement portfolio represents your life savings and the sacrifices you have made to attain the lifestyle you have earned and deserve in retirement.
Maybe now is the time for you to come in to get a stress test on your portfolio to see if the next time the market has a correction whether or not you will be prepared. To speak to a retirement planning specialist, please give our office a call at (775) 853-9033.