Paco Ahlgren is an Austrian economist who worked as a financial analyst for many years. His expertise ranges from stocks, options, futures, interest rates and real estate. Read more about Paco here, and here. – Ilene
The Unemployment Rate is SO Misleading
Courtesy of Paco Ahlgren at THE BOTTOM VIOLATION
[click on chart to enlarge]
It’s the duration, stupid.
Even if it weren’t a lie, just look at that vertical line…
1. The “unemployment rate” is a lie. It’s much higher than the government wants you to believe.
2. Even if it weren’t a lie, a 10% unemployment rate does not mean that the job market is 90% hot. Employment is absolutely frozen.
3. Unemployment has a much more dangerous dimension: duration. Have a closer look at the chart above.
