Proceed With Caution
Last week the unemployment numbers reported for July were amazing. This week the Producer Price Index and Consumer Price Index showed inflation is not growing quite as fast as it had been over the past few months.
While this is good news experts are pointing to the decrease in the cost of energy as the primary reason for the decrease. Gas prices in the U.S have fallen below 4 dollars a gallon for the first time since March of this year. It’s believed that gas will probably drop another 15 cents before the switch to winter blend. Another factor that may greatly impact the cost of energy occurred on Friday, when a federal judge reinstated an Obama-era moratorium on new coal leasing on public lands, halting all coal leasing on federal lands until an assessment can be done on the impact of the leases on the climate. This action will result in a marked increase in the commodity cost of coal.
The Market
The markets have responded to the good news on inflation. It’s presumed that since inflation is coming down the Federal Reserves may not be bullish about its interest rate increase. While it’s possible the Fed will moderate the rate of increase inflation is still far from the 2 percent deemed acceptable so, more than likely there will be another rate increase in the coming months.
The Workers
While U.S. corporations are absorbing the higher cost of production and employment, workers should not become complacent. Most experts predict the U.S. economy enter a full-fledged recession by 2023. The only questions are how severe and how long it will last.
The average worker needs to start rebuilding their savings to mitigate the impact of job loss. Additionally, they should still be looking for work in recession-proof jobs.
The Administration
The Administration has focused on the strength of the economy and downplayed any pockets of negative reports. Last week there were 14 thousand new first-time unemployment claims. While this is a fraction of the new jobs added in July it’s a sign that there are areas of the economy not doing quite as well.
What Can You Do
It may not be the time to be an optimist, but you don’t want to be pessimistic either. This is a good time to proceed with caution in everything you do.
1. Always weigh your options carefully. Consider both the pros and cons and don’t be blinded by the salary.
2. To the extent possible, include your family in the decision-making. The last thing you want to happen is to find the perfect job only to find out they want you to relocate thousands of miles away.
3. Think strategically when you consider moving to a new job. How will it help you to advance in your career?
4. Learn from past mistakes. Don’t let anyone try to rewrite history or tell you what you know happened didn’t. You lived it so you know it.
5. Make the best of the life you have. We each get one chance, make the best of yours. Take chances, when necessary, but always weigh your options. Go Get Yours!!!