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Post Recession Employment Recovery
Posted By Barry Ritholtz On August 9, 2005 @ 11:05 am In Economy | Comments Disabled
As per our prior discussion , the chart used by the WSJ reaches conclusions unsupported by the data. Consider the chart below — it shows how past recoveries have compared to more recent ones, as well as the present recovery.
click for much larger chart
This chart shows that at some point after a recession, the economy starts to appreciably recover from the prior weakness. Whether its tax cuts, fed cuts or just the normal rhythm of the cycle, the economy always recovers eventually.
What makes the present recovery such an oddity is how weak the job recovery actually is, and how long it has taken to get back to employment breakeven.
Special thanks to Spencer England  for doing the excel data crunching and creating the chart.
UPDATE: August 17, 2005 9:35am
Welcome WSJ  readers.
Since I keep getting the same email question, let me answer it by way of pointing you to this discussion: Understanding the Post-Bubble Economy 
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/08/post-recession-employment-recovery/
URLs in this post:
 prior discussion: http://bigpicture.typepad.com/comments/2005/08/misleading_wsj_.html
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/payroll_employment_5882_90s_01.jpg
 Spencer England: mailto:email@example.com
 WSJ: http://online.wsj.com/article/0,,SB112419322049714334,00.html?mod=home_us_inside_today
 Understanding the Post-Bubble Economy: http://bigpicture.typepad.com/comments/2005/04/understanding_t_1.html
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