Thursday, August 23, 2012

Mean vs Median unemployment divergence

The median duration of unemployment appears to be rapidly improving, while the mean appears to be stuck at historic highs. While the median is still high, the improvement may be the result of people that have either had their benefits expire (99ers) or chose to drop out of the work force, retire early. The mean may reflect the ongoing, grinding, struggle of the long term unemployed that absolutely must work to survive.

It looks like there are two distinctly different groups of unemployed persons left. Those that have employable skills and those that are work force detritus, still trying but have little hope at this point.

This is all just speculation and opinion, but the divergence is sharp and growing.

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