We’ve now had 10 straight months of job losses, bringing the total to about 1.2 million. While this sounds like a big number, the annualized rate on that number is right at 1%.
In past recessions, jobs typically contracted at about a 1.7% annualized rate.
We’ve probably got more layoffs to go, in the order of at least another 1 million souls, to catch up to the historical rate during a recession.
It will be interesting to see if the contraction in employment begins to accelerate to historical norms, or if in fact, it decelerates by 2H of 2009, as some are thinking.
Keeping a vigilant eye on this will give us clues as to the severity of this recession.
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