Monday, February 4, 2013

Percent Job Losses

This is one of my favorite graphs because it shows so much with just a single x and y axis. 

1) It clearly shows that this is the worst recession since the Great Depression in terms of job losses. The hole was so deep that most recessions would have already been back to full recovery in the same amount of time it took the 2007 financial crisis to bottom out.

2) Over time, recoveries from recessions have become increasingly more U-shaped instead of V-shaped. This is a sign of: (a) moving from a manufacturing to service economy; (b) jobs being replaced with technology; and (c) recessions becoming more concentrated in the financial sector. 

3) At the current pace of growth, we will not be back to a full recovery for another few years. 

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