Post great recession of 07-09, many including ourselves were not certain just what the rate of Employment or Unemployment the US economy would run at in the future.
- It was different this time many said?
- Technological advances and replacement would push many out of employment?
- Aging demographics may push the rates to different/higher/lower levels?
With almost 10 years in the books since the great recession began, we now know just what did change? Not much!
Full Employment/Unemployment history
Taking a look at this chart from FRED a research tank at the St Louise Federal Reserve, while it took longer to get back to historical levels, it finally has.
Granted there can be debates on the scope of the current employment rate, but from a high level measure stick such as this, it looks normal.
This longer term fantastic chart from this research report of the San Francisco Federal Reserve, shows the same.
Why did it take so long to normalize?
One good question many have asked is why did it take so long to normalize again?
The great recession was just that, so GREAT, it really put dents in the economy making this one of the slowest recoveries on record.
The weakest recovery line (slowest and lowest in the chart) represents this recovery. (This chart from our friends at JPMorgan.)
The good news about such a slow recovery is that is has also become one of the longest, due to just that fact, slow and gradual, and certainly not overheating!
Have a Great Full Employment Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth