Back in July, we discussed the “truest picture of excess labor supply” — the number of Unemployed per Job Openings. During the 2001 recession, the ratio of jobless people to openings was little more than double; in early 2009, job seekers outnumbered jobs four-to-one.
According to a front page Sunday NYT has article, that ratio has now hit an all time record:
“Job seekers now outnumber openings six to one, the worst ratio since the government began tracking open positions in 2000. According to the Labor Department’s latest numbers, from July, only 2.4 million full-time permanent jobs were open, with 14.5 million people officially unemployed.
And even though the pace of layoffs is slowing, many companies remain anxious about growth prospects in the months ahead, making them reluctant to add to their payrolls.
The dearth of jobs reflects the caution of many American businesses when no one knows what will emerge to propel the economy. With unemployment at 9.7 percent nationwide, the shortage of paychecks is both a cause and an effect of weak hiring.”
Nothing like having a 4 month jump on the big boys . . .
courtesy of NYT
The Truest Picture of Excess Labor Supply (July 1st, 2009)
Wage Deflation in Our Midst (July 1st, 2009)
U.S. Job Seekers Exceed Openings by Record Ratio
PETER S. GOODMAN
NYT, September 26, 2009