Unemployment Rate Is Going Up! Should We Worry?

Brett Alegre-Wood
October 3, 2020

Yes, unemployment it rising but it is not that much

It is to be expected that the unemployment rate will rise in this pandemic. We have seen a .2% rise which is not much. I think we can expect it to rise a little bit more as we enter winter but we should not worry so much. 

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The unemployment rate has gone. So if we have a look at the unemployment rate, the unemployment rate's gone from 3.9% to 4.1% so it is rising but you would expect that given the situation. The interesting thing is I find with this whole furlough scheme is that a lot of people are going to let go of people and a lot of people think well when the furlough ends everybody's going to get you know all of these people on furlough are going to get redundant. 

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As a business owner I sit there and go hold on a sec you know we employ about 50 people you know in various um countries and things like that actually it's probably more than that but anyway. The bottom line is with that is that when you have a look at it why would I hold on to somebody and pay their NI and all this sort of stuff, why wouldn't I get rid of them up front and you know leaner means save my cash because they're furloughed.

They're not working so it doesn't make sense to say wait until the end and then there's going to be a bit now sure there'll be some of that. What's been happening is there's been some every month but there hasn't been a massive drop. 

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That's quite positive one of the other positives with this whole thing is that actually if you look at China if you look at say Singapore where you know where I am and a lot of countries that are out of you know the main part of the you know the issue and they're back into you know some level of normality where they're going out shopping and going out eating and that sort of stuff.

Like Singapore where I am it's pretty busy right now, traffic is back you know shopping centres are full now not all shopping centres a lot of businesses have closed. That's where we talk about the zombie companies or the companies that have an open back up or industries that are no longer perhaps where they could have been. 

The unemployment is rising but you know what it's only 0.2% that's not dramatic it's not you know this it's kind of incremental with which is in line what you expect and i think most the stats we're finding that is exactly what we're seeing.

Video Transcription

The unemployment rate has gone. So if we have a look at the unemployment rate, the unemployment rate's gone from 3.9% to 4.1% so it is rising but you would expect that given the situation. The interesting thing is I find with this whole furlough scheme is that a lot of people are going to let go of people and a lot of people think well when the furlough ends everybody's going to get you know all of these people on furlough are going to get redundant. As a business owner I sit there and go hold on a sec you know we employ about 50 people you know in various um countries and things like that actually it's probably more than that but anyway. The bottom line is with that is that when you have a look at it why would I hold on to somebody and pay their NI and all this sort of stuff, why wouldn't I get rid of them up front and you know leaner means save my cash because they're furloughed they're not working so it doesn't make sense to say wait until the end and then there's going to be a bit now sure there'll be some of that. What's been happening is there's been some every month but there hasn't been a massive drop. That's quite positive one of the other positives with this whole thing is that actually if you look at China if you look at say Singapore where you know where I am and a lot of countries that are out of you know the main part of the you know the issue and they're back into you know some level of normality where they're going out shopping and going out eating and that sort of stuff. Like Singapore where I am it's pretty busy right now, traffic is back you know shopping centres are full now not all shopping centres a lot of businesses have closed. That's where we talk about the zombie companies or the companies that have an open back up or industries that are no longer perhaps where they could have been. The unemployment is rising but you know what it's only 0.2% that's not dramatic it's not you know this it's kind of incremental with which is in line what you expect and i think most the stats we're finding that is exactly what we're seeing.


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