Preferred Financial Services

Andover, Massachusetts June 11th 2010— The economy continues to produce mixed information on whether we have weathered the storm or are still in the middle of the deepest recession since the 1930’s. While there is positive news in manufacturing and Wall Street expectations for large firms in the coming year are mostly positive, there continues to be doubts whether the job market has turned the corner and can now consistently add jobs each month. The official unemployment rate stands at 9.7% while those working part time or not looking for work anymore make up another 10% of the work force. This means that the real unemployment rate is almost double the official rate. While this data is gloomy, there are signs of a turnaround that can not be seen in the unemployment rate data.

The past few months have seen the highs and lows of an economy struggling to escape a recession. In April, 218,000 private sector jobs were added while in May this rate dropped down to only 41,000, spooking the markets and creating a new fear that we are heading towards a double dip recession. However, analyzing some other data indicates that the job market is on a long term upward trend. Over the past few years the economy has lost over 8 million private sector jobs, many in industries that have no hope of returning to their pre recession levels. But just in 2010 we have added 982,000 jobs, leveling and eventually dropping the unemployment rate to its current 9.7%.

So you may ask, where is the good news indicating a job market recovery? Well, the data on those quitting their jobs voluntarily indicates that workers are becoming more confident in the recovery and are willing to leave their jobs with or without a new opportunity on the table. During the recession workers feared a job loss and thus stayed on in jobs they did not enjoy even while they were forced to take on more work as employers shed unnecessary workers. This increase in work coupled with a fear of termination led to very low morale in many firms and has created a whole wave of workers looking to move on to better opportunities. This new data shows the fear of not finding a new job has subsided and workers are confident enough that they can quit now. In April alone 2 million Americans quit their jobs, the highest in more than a year and a double digit percentage increase since January.

This rise in voluntary quitting has always been an indicator of an improving job market in the past. As quitting increases, lay offs drop which has happened over the past few months. Employees see the end of the recession even while many companies continue to operate like the recession is in full swing. This disconnect should lead to a continued rise in voluntary quitting until employers realize that they must appreciate and compensate their employees like they did before the recession began in 2007.

So readers, are you one of the 2 million that quit their jobs in April? Or are you still worried about your job as many sectors continue to see low levels of new hiring? Is this a sign the economy is out of the recession or are you still waiting to see actual hiring numbers improve?

Preferred Financial Services is a debt reduction firm certified by the CFC (Center for Financial Certifications) and accredited by U.S.O.B.A. (United States Organizations for Bankruptcy Alternatives). Headquartered in Andover, Massachusetts, Preferred Financial Services has been a leader in the debt reduction industry since 2003. Preferred Financial Services has acquired some of the best experience in the industry over the past seven years. In 2009 alone Preferred Financial Services reduced over $16.5 million worth of consumer debt for just $6.4 million, for a savings of about 60%- and over 2,900 accounts were settled on behalf of their clients.

For more information, please visit www.pfsdebtrelief.com or follow us on our blog at www.pfsdebtrelief.com/blog/ .

Contact:

Stephan Tavernini

stavernini@pfs1.net

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