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Atypical Business Cycle Recovery

Posted By Barry Ritholtz On July 22, 2005 @ 10:15 am In Economy,Markets | Comments Disabled

How atypical is the present recovery, in terms of employment rates and NILFs, when compared to prior cycles?

This much:

Frb_cleveland_0405 [1]

>

Its readily apparent from this chart that the unprecedented drop in Labor Participation rates is what’s responsible for the exceedingly low unemployment rates.

Now you have yet another tool in your econo-hackā„¢ detection kit. Anyone who gets on their hind legs to declare how wonderful the economy is based upon how low unemployment rates are outs themselves as a clueless known-nothing. 

> Rant mode off <

 

>

Source:
Federal Reserve Bank of Cleveland [2]
(Caveat Forecaster [3])
April 2005
http://www.clevelandfed.org/Research/ET2005/0405/trends.pdf


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URL to article: http://www.ritholtz.com/blog/2005/07/atypical-business-cycle-recovery/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/frb_cleveland_0405.jpg

[2] Federal Reserve Bank of Cleveland: http://www.clevelandfed.org/Pubs.cfm

[3] Caveat Forecaster: http://www.clevelandfed.org/Research/ET2005/0405/trends.pdf

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