Rocky Vega

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

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.

  • tony bonn

    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….

  • Papa Swamp

    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.

  • robertsgt40

    “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

Recent Articles

Why the Fed Will Launch Another Round of QE

Richard Duncan

Ben Bernanke introduced the world to the concept of "quantitative easing" back in 2002. It was an "unorthodox plan" to save the economy from the horrors of deflation. But the monstrous economy it has actually created is in some ways far worse. And as Richard Duncan explains, it's not going to end any time soon. Read on..


How to Safeguard Your Digital Currency

Dominic Frisby

While the technical details of Bitcoin may intimidate the novice, they shouldn’t keep him from getting in on a digital currency revolution that -- while taking different forms -- isn’t going away. How do you get the simplest, easiest-to-act-on tips about how to invest, safeguard and grow your digital wealth? Dominic Frisby has more…


Solar to Save the World, Ebola to Maim it

Chris Campbell

The duality is stark. In one hand, we have an energy renaissance underway, in the other, a virus is threatening to wreak havoc on the markets and, potentially, your life. Nothing we’re currently doing to fight the Ebola virus will work in 2014, say the researchers. Nothing we’re currently doing will beat it in 2015, either. We need a new game-plan. Read on…


How to Profit From the “Cycle of Hype”

Greg Guenthner

Lose your shirt in 3D printing stocks this year? Don’t kick yourself. You’re not alone. (Okay, kick yourself a little if it’ll make you feel better.) You need to make sure you don’t lose your 3D-printed shirt in the next tech craze. Because there will be a next time. Look, it’s really not your fault if you got taken for a ride on 3D stocks. Greg Guenthner has more...