On Wed, Mar 03, 2004 at 09:35:55AM -0600, Dan Minette wrote:
> 
> From: "Erik Reuter" <[EMAIL PROTECTED]>


> >          average
> >       unemployment
> >           rate
> >  years      %
> > ==================
> > 2001-2004  5.3
> > 1997-2000  4.5
> > 1993-1996  6.3
> > 1989-1992  6.1
> > 1985-1988  6.6
> > 1981-1984  8.6
> > 1977-1980  6.5
> > 1973-1976  6.5
> > 1969-1972  4.7
> > 1965-1968  4.1
> > 1961-1964  5.9

> > The last time there was a significant period with unemployment below the
> > "natural" rate of 5%, it was the late 60's/early 70's, which was a big
> > boom time. Which was followed by a big bust, with over a million jobs
> > lost and a period of lower employment.
> 
> I don't see where you got this.

I made a couple assumptions and calculated assuming unemployment went
from 4.7% to 6.5%. If unemployment went up because more than a million
people out of the "uncounted" entered the job market looking for work
net of those who left the market, then my conclusion may be wrong.

  Let me quote my statistics for those years
>              jobs
> year    x1000
> 1968   66805
> 1969   69438
> 1970   71176
> 1971   70866
> 1972   72445
> 1973   75620
> 1974   78104
> 1975   77297
> 1976   78506
> 1977   80692
> 1978   84595
> 1979   88811
> 1980   90800
> 
> Over no two year period is there a job loss.  Betwen jan 1974 and jan 1975,
> about 800 thousand jobs were lost, but in between 75 & 76, about 1.5
> million were gained.

So these data say my 1M estimate was too high, and should have been
800K. 

 Let us look at the recent years:
> 
> 
> 2000   130730
> 2001   132388
> 2002   130494
> 2003   130190
> 2004   130155
> 
> All numbers are January numbers BTW, that's why 2001 looks so good.  We see
> about 1.9 million jobs ere lost between jan 2001 and jan 2002, another 300
> thousand between '02 and '03, and another 35 thousand between '03 and '04.
> This is unprecidented.

If you leave out the spike in 2001, then your conclusion looks a lot
different -- less than 600K jobs lost.

I don't mean to dispute your suggestion of looking at the employment vs.
unemployment numbers, I actually think that is a good idea.  Perhaps we
have both been too cavalier with drawing conclusions from the limited
data set we were looking at. I don't really like looking at numbers that
show monthly changes, since the data looks so noisy, but that seems to
be what is most readily available. I'm looking around for more data
myself, and I'll have more to discuss later, probably this weekend. If
I can't find smoother data, I'll do some averaging myself and make some
graphs on my web page for discussion.


-- 
Erik Reuter   http://www.erikreuter.net/
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