support@kopiandproperty.com

Advertisement Banner

Of lower unemployment number and higher GDP recovery

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.

lower unemployment
Photo by Markus Winkler on Pexels.com

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.

Image source: Tradingeconomics.com

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.

Image source: https://data.worldbank.org/indicator/SL.UEM.TOTL.ZS

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.

Love to be updated of investment news? Sign up for KopiWeekly. (once per week for property, finance, investment news and more)

Please LIKE kopiandproperty.com FB page to get daily updates about the property market beyond kopiandproperty.com articles. Else, follow me on Twitter here.

Next suggested article: Working people, preparation before your loan application

Property Investment always start with knowledge. Equip ourselves with more here.

Motion arrow towards right
Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Motion arrow towards right
Share on facebook
Share on twitter
Share on linkedin
Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of kopiandproperty.com He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. kopiandproperty.com is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

Advertisement Banner

Facebook Comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Table of Contents

Most Recent Posts

join the family

Like us for daily investment news and more

Hit the like