CHART OF THE DAY: Earlier This Week We Got A Huge 'Tell' That The Unemployment Rate Was Going To Drop

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The drop in the unemployment rate in September — from 8.1% to 7.8% — should not have been a gigantic surprise.

As we reported before, the number is consistent with a lot of other September datapoints, including monthly auto sales, which came out earlier this week, and were at the highest level since the crisis, at nearly a 15 million annualized adjusted rate.

And as you can see from this chart, there is a LONG history of the unemployment rate (red line) moving in tandem with car sales.

And that makes total sense. People don’t buy cars if they don’t have a job.

chart of the day, unemployment rate vs auto sales

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