Friday, December 03, 2010

UGLY Unemployment Numbers

Despite other positives, such as the ISM and ECRI numbers, the unemployment numbers are just miserable.

The Employment-Population ratio declined to 58.2% in November matching the cycle low set in 2009 (black line). The Labor Force Participation Rate was steady at 64.5% in November (blue line). This is the percentage of the working age population in the labor force. The participation rate is well below the 66% to 67% rate that was normal over the last 20 years.

U-6 (which includes forced-part-time workers and those who gave up looking) is now at 17%.

The black vertical line in the above chart marks the 'worst' unemployment of each recession. The current situation is the line on the very bottom of the chart.

Not a good picture at all.

HT: CalcRisk


J. Strupp said...

Employment continues to track our lackluster 2.5% GDP growth. We aren't generating enough private sector jobs to keep up with population growth. At current trend, we'll be back to full employment by around 2030 or worse.

So let's talk about the deficit.....

Dad29 said...

Well, Strupp...

It's time for us to do the patriotic thing and join the Army.

YOU can be a bird colonel. I will be a general.

J. Strupp said...

Ironically, my grandfather was.