Detroit Bear
Deep value, special situations, long-term horizon, value

The Kelly Services Predicament

According to the Bureau of Labor Statistics, unemployment rates continue to improve at a nice rate. As of February, the BLS pegged unemployment at 6.7%. I think most people who follow economic data understand that this number is simplistic and foolish.

(click to enlarge)

Source: BLS, FRED

The above chart shows a much more realistic portrait of unemployment, currently situated at 12.6%. A healthier figure, going back to 2003, would be a rate of 9.5%-10.5%, so employment certainly has significant room to improve.

On top of a more realistic measure of unemployment looking rather poor, the employment-population ratio remains anemic.

(click to enlarge)

Source: BLS, FRED

While some may attribute this situation to structural changes (baby boomers retiring, higher structural...

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