Public Sector Job Cuts Will Keep Unemployment High--JP Morgan

JP Morgan has a very helpful chart which shows the pace of hiring among state and local governments. You can see that for the first time in the last 60 years, the public sector is shedding jobs, putting pressure on the unemployment rate and the labor market. Expect more of this to continue as state and local governments work to solve massive budget deficits. This dynamic should keep unemployment high because of the large contribution the public sector makes to the jobs market. Just the excuse the Fed needs to keep printing money to "save the economy."

click chart for larger image

Black Swan Insights


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