We had a flurry of bad economic news last week. And we have a critical — both economically and politically — jobs report coming up Friday.
So I thought I would pull back the camera a bit and look where the recovery stands:
1. The output gap — the difference between where the economy would be if it was recovering normally (the blue line below) and where it actually is (the red line) — remains a gaping, unhealing wound:
2. The number of working age Americans who are actually working, as a share of the total population, is dead in the water:
3. The U.S. labour force as a per cent of the civilian noninstitutional population remains in a death spiral:
And you know what’s really bad. Next year doesn’t look any better, as this JPMorgan forecast suggests: