Why The Unemployment Rate Is Going A LOT Lower

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		Tech Entertainment Wall Street Markets Strategy Sports Lifestyle Politics Europe Video Latest Thursday, February 9, 2012 Why The Unemployment Rate Is Going A LOT Lower Today's strong initial claims number was the second best since the financial crisis, and a nice confirmation that last week's Non-Farm Payrolls report was no fluke. And the good news is that the unemployment rate -- which is down to 8.3% -- is probably going a lot lower. This chart, which we first saw published at The Bonddad Blog, looks at the historical relationship between initial claims at unemployment. The key tweak is that the red line -- initial claims -- is "detrended" meaning its divided by the population rate, so that it adjusts for the expanding population (you'd surmise that as the population grew, that initial claims would also generally drift higher for reasons that have nothing to do with the economy). When you present the two in this way, you can see there's a fairly tight relationship, and you can also see that based on this historical pattern, the unemployment rate should come down. Read » Also On Money Game Today: Natural Gas Prices Jump After Chesapeake Energy Announces New Capacity Cuts A Guide To The Horrible Youth Unemployment Mess In Europe STUDY: Fracking Chemicals Are Killing And Neutering Pets And Farm Animals A Quick Look At How Much The Stock Market Has Died Advertisement CHART OF THE DAY: This Is Why The US Doesn't Care About Europe CHART OF THE DAY: Hedge Fund Managers Should Be Thrilled To Death Over This CHART OF THE DAY: A Major Shift In The Stock Market That Everyone Is Cheering About Share this: Facebook Twitter Digg Reddit StumbleUpon LinkedIn The email address for your subscription is: dwyld.kwu.jobhuntportal11@blogger.com Change Your Email Address | Unsubscribe | Subscribe | Subscribe to the Money Game RSS Feed Business Insider. 257 Park Avenue South, New York, NY 10010 Terms of Service | Privacy Policy

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