The Atlanta Fed’s macroblog has compiled a roundup of evidence showing that the economy is in a jobless recovery. It shows that jobs are scarce, that a higher than average number of jobs have been lost in small businesses (which is a bad sign), and that many workers have been forced into part time status.
However, the data point that really jumps out is this one — the dominant reason for unemployment in the current economy is permanent separation. Permanent separation is when a job is cut and it’s never coming back…versus temporary layoffs, quitting, and other types of job losses.
It’s a unique point because the percent of permanent job losses haven’t been this high in over 30 years, and as the article goes on to say, “Never, in the six recessions preceding the latest one, did permanent separations account for more than 45 percent of the unemployed. The current percentage stands at 56 percent as of September and appears to be still climbing.”
The post came to our attention via CalculatedRisk which, in looking at the finding commented, “So far the current recovery is even worse than “jobless”; it is a “job-loss” recovery.”
This data provides more proof that the economy isn’t really recovering. It’s important to look at the numbers behind the headline statistics to understand how this depression really is different from other, previous times of economic turmoil. The post from CalculatedRisk highlights permanent separations and macroblog has more details about a variety of joblessness stats.
Rocky Vega is publisher of Agora Financial International, where he advances the growth of Agora Financial publishing enterprises outside of the US. Previously, he was publisher of The Daily Reckoning, and founding publisher of both UrbanTurf and RFID Update -- which he ran from Brazil, Chile, and Puerto Rico -- as well as associate publisher of FierceFinance. Rocky has an honors MS from the Stockholm School of Economics and an honors BA from Harvard University, where he served on the board of directors for Let?s Go Publications, Harvard Student Agencies, and The Harvard Advocate.
there is no such thing as a jobless recovery….that crock term was invented by the voodoo economists in the government trying to fool morons that the economy was growing while everyone knew it was shrinking….
the only people for whom the economy has recovered are the vampire squid banksters who have received trillions of taxpayer aid….
on the other hand no one will care that the economy is jobless because those losing their jobs are in the lower income quintiles whose economic impact is de minimus shall we say….
one inflationary increase of gdp does not a recovery make….
I seem to be missing the recovery part all I see is the market going up because companies have slashed and continue to slash jobs in order to stay above water (minus a very few exceptions). 70% of our economy is domestic consumer based….that market is being permanently removed from the ability to purchase.
“Jobless recovery”? Would that be true if all the unemployed just died? Look at the quotes from the talking heads(and fed) around 1929-1937. Same BS, different crew. We’ve been hosed..by design. This is the end game of the “Federal Reserve”..transfer the nation’s wealth into the hands of greedy international banksters
Dr. Marc Faber discusses the Chinese stock market, as well as the contagion risk posed by the Greek debt crisis and the prospects for a resolution...
Puru Saxena explores Greece’s referendum, which will determine whether or not the nation accepts its creditors’ austerity measures...
Jim Rickards sat down one-on-one with Ben Bernanke on May 27th. Read on to listen in on their conversation and learn why “the international monetary system is not coherent”...
Charles Hugh Smith reports on why papering over the structural imbalances in the Eurozone with bailouts or bail-ins will not resolve the fundamental asymmetries in trade...
Chuck Butler discusses the stimulus in China and what he sees are the differences, plus details as Greece arrives in Brussels with their latest proposal for an agreement. All that and more in today's Daily Pfennig...
With the oil sector cruising in low gear since last year’s price collapse, should you be investing in oil companies? Yes, according to our friends at Sprott, Henry and Rick — especially if you look at mid-stream companies, which move oil from point A to point B. Since oil moves no matter the price, they make money no matter the price!