Unemployment at a decade low

In every month unemployment sat in the lowest tenth of its own past ten years, what did it do over the following two years?

6 windows met these conditions and completed 24 months. US Unemployment Rate was higher 24 months later in 2 of them and lower in 4. The middle half of outcomes fell between -0.55 and 0.1.

What followed, across 6 completed windows

Higher after
2
Lower after
4
Middle half
-0.55 to +0.1
Full range
-0.8 to +0.3

Change in US Unemployment Rate over the 24 months after each match. Windows are listed below so any one can be checked.

Term structure

US Unemployment Rate measured 1, 3, 6 and 12 months after each matched episode, with the count of completed windows at each horizon — not a forecast path, the same distribution above asked again at three more calendar distances.

HorizonNHigher / lowerMiddle halfFull range
1m62 / 3-0.1 to +0.07-0.2 to +0.1
3m61 / 4-0.2 to -0.02-0.3 to +0.3
6m61 / 3-0.2 to 0-0.2 to +0.1
12m60 / 5-0.5 to -0.3-0.5 to 0

N is windows with a complete outcome at that horizon; a window that runs past the end of the record is excluded from it, not filled in. A horizon below the 5-window floor is marked thin the same way the 24 months result above is.

The conditions, in full

Generated from the same object that produced the numbers, so the description cannot drift from the computation.

  1. condition: UNRATE below its 10th percentile over 120 observations
  2. align: each condition is put onto the measured series' dates, taking the last observation on or before each, so windows and spans count in the measured series' own periods
  3. measure: UNRATE over the following 24 observations
  4. matches within 6 observations count as one episode

Every matching window

6 episodes, each dated. Consecutive months meeting the conditions count once.

BeganRan forUS Unemployment Rate thenAfterChange
Nov 196517 mo4.13.9-0.2
Jan 196817 mo3.73.9+0.2
Nov 198732 mo5.85.4-0.4
Aug 199653 mo5.14.5-0.6
Feb 201737 mo4.63.8-0.8
May 202215 mo3.63.9+0.3

Recompute this

Fetch UNRATE from the API or from FRED, apply each condition on the same dates, collapse consecutive matches, and measure the change over the following 24 months. The full rule is in the claims ledger.

This page counts and dates. It does not say what will happen next, and no window above is presented as more likely than another — MacroRadar publishes historical indicators, never forecasts.