IS THE US LABOR MARKET STRONG?
Nothing could be further from the truth
Number of unemployed Americans for 27 weeks & over SKYROCKETED by 36% year-over-year in June
This is 6th straight month of increased
Every time it jumped so much in the past, a recession in the US occurred pic.twitter.com/RDOcOvSNZu
— Global Markets Investor (@GlobalMktObserv) July 11, 2024
The unemployment rate in America has risen from 3.4% to 4.1%, with the raw number of unemployed Americans spiking over the last year. The net result is that the US economy is inching closer and closer to recession.
Historically – when the unemployment rate increases this much in a short period of time, it signals that the economy is building negative momentum that becomes self-reinforcing, and eventually results in a widespread recession.
This same increase in unemployment occurred in late 2007 and mid-2000 before the Great Financial Crisis and Dotcom Bubble Bursting.