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.