The U.S. Labor Department reported today that the unemployment rate has increased to 10.2% -- this is a 26-year high. To understand the significance of our current labor market the above chart illustrates the unemployment rate since 1948.
The chart shows that today's move above the 10% threshold is only the second time since World War II that the rate has exceeded 10%. It is also worth noting that the unemployment rate historically tends to peak shortly after a recession ends. However, following the previous two recessions, the unemployment rate continued rising for many months following the beginning of an economic "expansion."
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