1.) The unemployment rate is always very low just before a recession.
2.) The unemployment rate typically moves up pretty strongly after the recession starts as employers stop hiring pretty quickly. In other words, the tide changes very quickly.
Sunday, April 15, 2007
About That Low Unemployment Rate....
One of the main arguments against the recessionary forecasts is the low unemployment rate. The chart below illustrates a few points about that argument.
1.) The unemployment rate is always very low just before a recession.
2.) The unemployment rate typically moves up pretty strongly after the recession starts as employers stop hiring pretty quickly. In other words, the tide changes very quickly.
1.) The unemployment rate is always very low just before a recession.
2.) The unemployment rate typically moves up pretty strongly after the recession starts as employers stop hiring pretty quickly. In other words, the tide changes very quickly.
