This is the ‘Greatest Depression’.
The real US unemployment rate is not 9.8% but between 25% and 30%. That is a depression level of job losses …
Aug 2010: Welcome to the Recovery (New York Times, by Timothy Geithner)
– The US Labor Market Is In A Full-Blown Depression (ZeroHedge, June 6, 2012):
Now that stocks are back to reflecting nothing more than expectations of how many times the Chairsatan dilutes the existing monetary base in a carbon copy replica of not only 2011 but also 2010… and 2009 (because contrary to what purists may believe, the only way to inflate away unsustainable debt in a growth-free economy is by destroying the currency), and manic pattern chasers have crawled out of their holes proclaiming the death of the bear market after a two day bounce, what is happening in the actual economy, no longer reflected by the market, has once again been pulled back to the backburner. Which is sad, because while ever fewer people reap the benefits of artificial, centrally-planned S&P rallies, the rest of the population suffers, and what is worse: hope for a quiet, middle-class life is now an endangered species. Nowhere is this more evident than in the following list from David Rosenberg which summarizes how, quietly, the US labor force slipped back into a full-blown depression.
From David Rosenberg:
One Sick Labor Market
There were so many disturbing elements to the May jobs data that we’re not sure we can do justice to the litany of disappointments (with some help from our friends at the Investor’s Business Daily):
- The share of long-term unemployment is at its highest level since the Great Depression (42%).
- Fully 54% of college degree graduates under the age of 25 are either unemployed or underemployed.
- 45 million Americans are on food stamps — one in seven residents.
- 47% of Americans are on some form of government assistance.
- The employment-to-population ratio for 25-54 year olds is now 75.7%, lower than it was when the recession supposedly ended in June 2009.
- The number of people not in the labour force has swelled eight million since the recession ended; absent that effect, the unemployment rate would be 12% right now (about the same as President Obama’s election chances would be).
- The number of people confident enough to leave their jobs fell 11% in May
for the second month in a row to 891k, the lowest since November 2010.
- The ranks of the unemployed who have been looking fruitlessly for work for at least 27 weeks jumped 310k in May, the sharpest increase since May 2011.
- The unemployment rate for males aged 16-19 is 27% and for males between 20 and 24 it is 13%. Draw your own conclusions from a social (in)stability standpoint.
- One in seven Americans are either unemployed or underemployed.
- Only one in six of the youth are working full-time and three-in-five are living with their folks or another relative (as per the NYT).
- A mere 16% of the 2009-2011 graduating class has found full-time work, while 22% are working part-time. Even those hired from 2006-08, just 23% are working full-time.
- According to a poll cited in the NYT, just 14% of high-school grads today believe they will have a more successful financial future than their parents Line of the day, as depressing as it is, comes from an 18-year old: “Thank God I had a buddy at Burger King who could help me out”. Fast-food has emerged as the fast-growing industry in a country once led by technology. Even tech now is fuelled more by companies that produce nifty consumer gadgets and feed our narcissistic needs than those who focus on improving the nation’s capital stock which is the ultimate trailblazer for productivity growth and durable gains in our standard-of-living.