From Calculated Risk, a graph including today’s release of unemployment insurance claims:
Everyone thinks that this is terrible news, that unemployment insurance claims are not letting up. But take a look back during the tech boom recession, claims didn’t let up for a long time either. Given the severe magnitude of this recession, we won’t see any easing of unemployment insurance claims back to pre-recession levels for a very long time. Some structural employment issues at play may even cause claims to bottom out much higher than had previously in the boom times. A more dynamic labor market may be in order if hiring rates peak at a point that would offset claims, and that would mean that with a little more context, the issue isn’t as bad as we see it. Ups and downs should be expected. This is really an issue of scale, and the severity of our recession has skewed our benchmark.