We all see what happens globally when the fourth largest economy in the world (Japan) begins to fall.
Now imagine what will happen when the world’s largest economy (the United States) becomes seriously sick.
And it’s coming!
A new indicator is suggesting that the United States is heading towards another recession.
In July, the number of people who have been unemployed for the long term—defined as being without a job for 27 weeks or more—increased by 27.4% compared to the same time last year.
This joins worsening indicators like the PMI (manufacturing), new Housing Starts, Business Bankruptcies, CRE (Commercial Real Estate), Bank Stress Tests, and more.
This rise in long-term unemployment marks the seventh consecutive month of increases, signaling a potentially troubling trend in the labor market.
Historically, such significant and sustained increases in long-term unemployment have been seen only during periods of economic recession.
(Chart source: FRED)
Comments