The Fed, Gold & Jobs

The unemployment statistic is one of the most important numbers being studied by the Federal Reserve Bank. Its attempt to influence growth in the economy can only be proven out by growth in employment. This is because a growing economy means the need to produce more, and consequently, increase hiring.

But all the liquidity that is being added by the Federal Reserve Bank, even though it’s plainly worked to boost the gold price over time, has had little effect on unemployment, because most of the money is not reaching the economy, or the people in the private sector.

Oftentimes, we read that the unemployment rate has dropped. But that’s unfortunately because the Labor Force Participation Rate has dropped. So the real unemployment rate is higher than what’s reported, because the participation rate is the barometer that shows how many people looking for work have lost faith that they can find full-time employment.

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