The unemployment data released last week does not make sense. While news were released about the decrease in unemployment rate, information was also being released that employers in the United States has slowed down their hiring pace in July which produces a pair of mixed signals. This contradicting information only casts doubt over our "economic recovery".
Lets keep in mind that the drop in unemployment rate was in part due to the decline in the workforce size (people with jobs or looking for work). The US workforce size is reduced by those who retire, go to school and give up looking for work. Another important piece of information is that in the month of July Americans worked shorter weeks on average.
You may be wondering what does this information has to do with wealth building and the answer is everything. The financial data, including labor statistics, released by the government is intended for one reason; to cause a reaction on us. It is intended to cause you to divert some of your hard earned funds into the stock market, real estate, etc. It is important to study the information being presented to us, ask questions, and not to react to it.
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