As shown by Calculated Risk below, despite today’s positive jobs data, we still have a very long way to go until unemployment returns to normal levels. Yet this can be read in a positive light as well — we still have much room for improvement when it comes to market expectations. The chart shows how the expectations hurdle has been set extremely low.
Calculated Risk: The second graph shows the job losses from the start of the employment recession, in percentage terms (as opposed to the number of jobs lost).
For the current recession, employment peaked in December 2007, and this recession is the worst recession since WWII in percentage terms, and 2nd worst in terms of the unemployment rate (only early ’80s recession with a peak of 10.8 per cent was worse).