Comparing Unemployment Rates Across Eras

January 12, 2009 11:55am by Barry Ritholtz

Is the economy better or worse than it was in the early 70s? How about early 80s? What about Unemployment?

I suspect that most people think both the Recession and Unemployment are worse now than it was during either of those prior periods.

If that is the case, than what are we to make of the following chart below? It shows Unemployment peaking (after) the ’74 recession at ~9%, and unemployment peaking (after) the ’82 recession at 11%. Here we are 12 months into this recession, with Unemployment just over 7%.

I can think of several explanations for this anomaly: 1) The data is off; 2) this recession is not as bad as those were; 3) structural changes in the economy mean less layoffs; 4) demographics are impacting people leaving the labor force, helping to keep UR lower; 5) we have a lot further to run in terms of job losses. Perhaps some combination of all 5 of these factors are involved.

>
click for ginormous chart

via economagic

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment. The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client. References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others. The Compound Media, Inc., an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers Please see disclosures here: https://ritholtzwealth.com/blog-disclosures/

twitter

facebook