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Friday, September 05, 2014

Flash back 2011: Jobless Recoveries: Causes and Consequences

Jobless Recoveries: Causes and Consequences

“Since the so-called Great Recession ended in June 2009, the unemployment rate has remained high. It topped 10 percent in late 2009, remained above 9.4 percent in 2010 and was still at 8.9 percent in February 2011—much higher than during any other recovery since the 1970s. Persistent and unusually high unemployment suggests that this jobless recovery might be more painful than the previous two.”

According to the Fed’s study for the US economic recoveries after the last 5 recessions – 1973-75; 1981-82; 1990-91; 2001; and the so-called “Great Recession of March 2008 through June 2009 (roughly 6 months after Obama took office) – The latest US recovery beginning in June 2009 has been the “worst” and the most “jobless” recoveries of ALL of the last 5 US recessions. 24 months after all 5 of these “recoveries” started the Obama “recovery” unemployment rate was still about 9.5% compared to the previous 4 recessions of from about 7.5% to only about 6% for the “recoveries” from 1975 through 2001.

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