Saturday, February 07, 2009
The Downward Slide
This chart on the unemployment trend is from Nancy Pelosi's office and shows how steeply the U. S. economy is falling during the current recession.
The top two lines illustrate what relatively mild recessions look like. The blue line is the 1990 recession in which employment losses stopped falling after 11 months and totaled 1.6 million jobs. During the 2001 recession, the economy lost most of its 2.7 million jobs during the first 12 months and then sank more gradually for another 15 months.
The difference between the current recession and the other two is stark. Where the sharpest rise in job losses were over after 12 months in the previous two recessions, this recession has seen an acceleration in job losses after 12 months.
This is one reason why a major stimulus package is necessary now.