The unemployment surprise

Headline unemployment may be falling but this extract from John Mauldin summarises the US predicament:

We are employing almost 5% fewer people as a percentage of our population than we were at the beginning of 2008. That means our real unemployment-to-population level is well over 12%. So we’re not even close to where we were in 1999, during the last year of the Clinton administration. And that doesn’t take into account the 50% of college graduates who are underemployed. A significant part of the problem is simply the fact that we are trying to recover from a deleveraging recession. The data suggests that such recoveries may take 10 years. For Japan it is more than 20 years, and counting.

The unemployment surprise (pdf).

One Reply to “The unemployment surprise”

  1. Colin
    If unemployment is the most important issue then we have to stop being more efficient. Efficiency to corporate America means down sizing or out sourcing. Either way more eduction ( 50% students unemployed ) will not fix this problem.
    If you have some specific idea’s I would love to hear them.

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