10.03.2024
Can Interest Rate Cuts Revive Private Equity?
It has been well documented that private equity has been experiencing pressures over the past two years, marked by declines…
This week’s chart analyzes job growth after the last four recessions by examining employment levels 60 months after the start of each recession. The data focuses on private employment, not government employment. Ellipses on the chart represent the end point of each recession, whereas squares represent the beginning of job growth.
The 1982 recession lasted seventeen months. After its cessation, it took only nine months for employee growth to emerge. While the 1990 recession lasted nine months, it endured an additional 26 until job growth began. The length of the 2001 recession was again brief lasting only nine months, but it withstood 30 months until growth mode. The most recent recession began in December of 2007 and lasted nineteen months. At 27 months and counting, we are still waiting for job growth to commence.
Five years after the ’82, ’90, and the ’01 recessions, private sector job levels were well ahead of their pre-recessions levels. Unfortunately, it is difficult to paint a happy picture on the current status of employment: while there has been progress in recovering lost jobs, substantial headwinds remain, as 6.3 million more jobs are needed to return to pre-recession levels.
The opinions expressed herein are those of Marquette Associates, Inc. (“Marquette”), and are subject to change without notice. This material is not financial advice or an offer to purchase or sell any product. Marquette reserves the right to modify its current investment strategies and techniques based on changing market dynamics or client needs.
10.03.2024
It has been well documented that private equity has been experiencing pressures over the past two years, marked by declines…
10.02.2024
— LIVE WEBINAR OCTOBER 23 — Please join Marquette’s research team for our 3Q 2024…
09.27.2024
With the first Federal Reserve rate cut of the current loosening cycle in the rear-view mirror, investors are now questioning…
09.19.2024
The Fed turned the page and began lowering interest rates with an outsized 50 bp cut at its September FOMC…
09.18.2024
The pullback in global equity indices at the beginning of August left many investors racing to understand what had caused…
09.13.2024
At the start of this year, economic forecasts called for up to five 25 basis point interest rate cuts by…
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