Thursday, May 28, 2009

Unemployment Rates for the Last 20 Years

Today we got word that the the pace of Unemployment for the month decreased a bit. That's not that great news considering it still increased by more then 600,000 individuals. Anyway, On this Thursday I thought we'd have a look at the US unemployment rate for the last 20 years. I like graphs and charts, because like they say "a picture is worth a thousand words." Graphs tell multiple stories and quickly allow you to visualize just how bad things may be right now:

Looking at the chart above, which is about 45 days old, it is really daunting how fast the unemployment rate rose. Much faster then any time in the last 20 years, or last 60 years for that matter. Another thing sticks out is year and a half from 2007-2008 where the unemployment rate was under 4%. At the time we didn't realize how good we had it. Now, as the rate approaches 10%, probably sometime by the year's end, we look back just 18 months and wish we were even close to those rates. The good thing though is that we likely won't go much higher then 10%, and soon after will begin adding jobs. Will we see a rate of 3.5% like we did 2 years ago, anytime soon? I doubt it, but by late 2011 I wouldn't be surprised seeing the rate in the 5-6% range, which isn't half bad.


xavier said...

This is something really worrying because the unemployment has rose in the last 20 years, something really similar happens when people use to buy viagra because the rate also increases a lot, by the way the unemployment is a fact, that's because the few opportunities the companies offer.

petronius28 said...

It appears that the average rate of unemployment is about 5% more or less. The 5% rate accounts for job changes; firings, quitings and relocations, among other reasons. This is a constant but variable rate. Therefore the actual rate now, is not 8.2% but about 3%. The American people are being sold a bill of goods in that the rate will never be zero percent. QED.

Scott Then said...

Really? So unemployment is really 3%? So unemployment in 2008 was .5% come on.. stop trying to spin numbers... those who are unemployed are exactly that unemployed... those that have jobs, are employed... stop spinning numbers and finally tell people true numbers!

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