by Mike ‘Mish’ Shedlock
The percentage of those unemployed for 15 weeks or longer spiked to 5.0% in July. And it will be much worse next month.
Long-Term Unemployment 1950 Through August 2020
[…] What’s Going On?
The above chart shows long-term unemployment is typically a very lagging indicator. This happens because layoffs increase as recessions grow in length.
U1 is 15 weeks or longer so it took this long to kick in.