High unemployment is not good. Lower unemployment numbers are good.
No jobs, no money. No money, no recovery. No recovery definitely cannot buy property. Thus, a lower unemployment number will mean higher the recovery that we could expect for the economy. ONLY if the economy is moving that people could spend more. Only when we spend more that the economy will continue moving. Looks like a chicken vs egg situation yeah. The one thing which affects all these would be sentiment.
You see, the spending has to come from those with more money, not those without enough. When sentiment is negative, many of these with more money people would not want to spend money, preferring to keep the money safely in the bank. That’s why interest rates have to be lowered so that some of these people may take those money out and invest.
This will soon bring about multiplier effects and by then, we may again see many unrelated companies wanting to become a property developer. Right now, we have many unrelated companies wanting to become a glove manufacturer. Just remember to evaluate these companies based on fundamental and not based on some out-of-this-world projections yeah. Okay, coming back to unemployment rate. Remember, the lower the unemployment, the better. Image below showing the latest numbers from August 2020.
Yeah, if we just look back a little bit, we would noticed that our typical lower unemployment rate versus now has always been below 4 percent. Actually, at 5.3% our unemployment rate is still considered okay. The unemployment percentage for the world for 2020 is 5.42%. In other words, there are countries which are better and there are those which are worse but I think it’s safe to say that with COVID-19 vaccines coming and the economies all reopening, the number for us and the world will continue the downtrend.
By the way, this is not meant to make you feel we are awesome. This is to tell you that we are not as bad as what you think; that the whole world is doing fine and the only country which looks xxxx is Malaysia. Also, I think everyone needs to know that my views for negative articles are usually higher than the positive ones. Do not ask me why. Maybe people just love bad news for whatever reason. So, I need to continue writing facts yeah.
Thanks for reading and being updated and happy sharing if you also think we are the ones making our country feel terrible and would like to share some factual numbers. Take care.
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