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May 4, 2012

Chart of the Day: Recovery Still Weak

This morning we discussed the bad economic news from the most recent jobs report. Hiring is slowing, the workforce is shrinking, and private sector jobs are not growing quickly enough.

For a visual representation of the problem, a new chart from Calculated Risk puts the problem in perspective (h/t Business Insider):

Posted in Economics & Business, Quick Takes
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  • Mrs. Davis

    The equally venerable Calculated Risk blog is the ultimate source of the chart in the post. But this post shows an additional graph (which I would embed if you had a preview button) that demonstrates that the recovery in private jobs has been much better than the gross level chart shows. Maybe something to do with government jobs and the blue model?

  • thibaud

    The housing market is the dead weight on the US consumer economy, which is to say 70% of the US economy.

    The clouds that lowered upon our house(ing sector) are Citibank and BoA/Countrywide.

    Until these two zombie banks are broken up, and their mortgage units forced to write down and begin working out all their junk, the housing market will not clear, responsible borrowers will not be able to finance or refinance, and US consumption hence US growth and hiring will continue to stagnate.

    So silly that our elites have refused to act for nearly four years now, preferring instead to prop up the zombies’ share prices and in effect, bail out their shareholders – at the expense of the rest of us. For shame.

  • Anthony

    A little narrative to above graph WRM: Hiring slowed in April and workers dropped out of labor force in droves ( approx. 342,000 workers dropped out of labor force – 63.6% of work age population now participating); going forward trends and revisions will provide clearer picture.

  • http://facingzionwards.blogspot.com/ Luke Lea

    Even more worrisome. You’re only considered unemployed if you’ve been actively looking for a job in the past month. But as anyone knows who has ever looked for a job, if the prospects look dismal you can get pretty discouraged. According to Dept. of Labor:

    “Discouraged workers” are a subset of the marginally attached. Discouraged workers report they are not currently looking for work for one of four reasons:

    1. They believe no job is available to them in their line of work or area.

    2..They had previously been unable to find work.

    3. They lack the necessary schooling, training, skills, or experience.

    4. Employers think they are too young or too old, or they face some other type of discrimination.

  • Jim.

    Our economic down-cycles are getting more serious.

    So, this graph proves just one thing:

    Economists are getting dumber.

  • Micha Elyi

    Judging from the graphs, the recovery from the Obama recession might reach the level of the trough of the Reagan recession just about the time President Romney is being sworn in.