The table below shows the unemployment rate since 2020. Prior to the onset of COVID, the unemployment rate bottomed out at 3.5% in February 2020, the lowest unemployment rate since 1969. After skyrocketing to 14.7% only two months later in April, the unemployment rate began declining in May but was still at 6.7% in December 2020, significantly above the pre-COVID low. In 2021 a gradual decline in the rate continued, and by July 2022 the rate finally returned to its pre-COVID low of 3.5%. In 2023 the rate has remained extremely low, registering 3.4% in January which beat the pre-COVID low. The unemployment rate was still at only 3.5% in March.
Unemployment Rate (Source: Bureau of Labor Statistics)
Year
Jan Feb Mar
Apr
May
Jun
Jul
Aug Sep Oct
Nov
Dec
2020 2021 2022 2023
3.5 3.5 4.4 14.7 13.2 11.0 10.2 8.4 7.9 6.9 6.7 6.7 6.3 6.2 6.1 6.1 5.8 5.9 5.4 5.2 4.8 4.5 4.2 3.9 4.0 3.8 3.6 3.6 3.6 3.6 3.5 3.7 3.5 3.7 3.6 3.5
3.4 3.6 3.5
The strength of the job market is also indicated through the chart below, which shows the number of unemployed workers per job opening since 2008. The number of unemployed workers to job openings has been less than one since June 2021, lower than at any other time this century. In other words, there were approximately two job openings for every one person unemployed. “Labor shortages” appeared in many industries, leading to a relatively strong increase in wages in both 2021 and 2022. According to the Federal Reserve, in July 2022 the three-month moving average of median wage growth was at its highest level of the century at 6.7%. Although wage growth has decreased slightly from its peak, in 2023 wage growth still exceeded 6% between January and March. Number of Unemployed Persons per Job Opening Source: U.S. Bureau of Labor Statistics
Central Wisconsin Report - Spring 2023
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