Chart of the Month | U.S. Jobs Machine Keeps Cranking

May 1, 2019 |
1 minute read

This month we turn our attention to the economy and, specifically, employment. As investors contemplate when this historically long period of economic growth might end, employment trends are one of the important indicators to watch. While each business cycle is unique, it can be informative to look back and compare the current environment to those past. So, the chart below looks at changes in nonfarm payrolls for the years during and following the Global Financial Crisis (GFC) as compared to past recessions in 1969, 1990 and 2001. What we see is that the GFC resulted in a much deeper and longer period of job losses than any of the other recessions. In fact, it took four years just to regain the jobs that were lost. Once that threshold was crossed, job growth has continued to be strong for five years. While this expansion has been extended, it still pales in comparison to the job gains of the 1990’s expansion. We don’t know for sure when the next recession might happen, but past experience tells us that changes in employment will be critical, so we are watching it closely. As of now, the U.S. job machine keeps cranking.

Chart of the Month - US Jobs Machine Keeps Cranking




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