Why structural unemployment matters to investors
Investors should always be aware of unemployment, especially when investing in companies that manufacture or sell products to the public. When unemployment is severe, people may buy less, which can impact the profitability of all sorts of companies, from retailers to service industries.
Structural unemployment, though, is one to keep an eye on for this reason: If there is increasing structural unemployment and it reaches levels that start to affect local economies, it may spread outward and begin to drag down more areas.