On September 4, 2009, the Bureau of Labor Statistics (BLS) reported the monthly unemployment rate at 9.7%. This was the highest unemployment rate since the early 1980s. Since 1948, the highest unemployment rate was in the 1982/ 1983 period when unemployment reached 10.8% in December 1982.
In the slow grinding 1970s economy, unemployment peaked at 8.6% in July 1975. We have been constantly reminded that this recession has been the worst since the 1930s. However in the early 80s, the double dipped recession was then reported as the worst recession since the 1930s.
The current recession officially began December 2007 when the unemployment rate was 4.9%. However the unemployment rate bottomed in March 2007 at 4.4% and has since climbed to its highest point of 9.7% in August.
In August 2008 the rate reached 6.2%. May to July of 2009 the rate has been relatively stable around 9.4% to 9.5%. At the regional and state level, there have been some decreases in the unemployment rate.
It is interesting to note the national unemployment rate was trending higher from June 1953 at 2.5% to the peak in December 1982 at 10.8%. From January 1983 to September 2000 when the rate reached 3.9%, the unemployment trend was lower. To see a rate lower than 3.9% you have to look back to December 1969.
Many economists are currently struggling with the question of where do we go from here? Not so much in the short run as unemployment is a lagging indicator, but in the longer run. Has a new slower growing economy emerged?
Related Articles:
July 2009 state unemployment rates
Redefining the unemployment rate
August underemployment increases
Comments