Given the lack of seasonal adjustment in this series the numbers don’t look as bad as they are – December is normally a very strong quarter for employment after all.
A unemployment rate over 5% in December is a possibility – if these numbers actually line up with the household labour force survey 😛 . Businesses now believe that the recession will keep going – and they have to lay people off to keep going 🙁 (given that wage costs are “sticky”).
How do you feel about the tanking labour market? What do you think this should mean about changes to the minimum wage? (ht guy that called me today about the minimum wage review)