Saturday, January 10, 2009

Unemployment in the US - how high?

The UK Times out-headlines the LA Times

The first tells us, Worst year for US unemployment since Second World War and the second, U.S. unemployment hits 16-year high: 7.2%

Of course the first writer is using absolute numbers and the second is talking about the rate.

In the US unemployment hit 7.3 percent in 1992. In the same year Canada and NZ hit 10.2 and Australia 9.5 percent.

One of the reasons I suspect unemployment didn't worsen in the States (and may not go much further this time) is they do not make it easy for people to stay unemployed. They do not fund a universally and indefinitely available dole out of general taxation.

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