- The U-6 unemployment rate – a less popular reading than the commonly cited U-3 – suggests additional fiscal support could be unnecessary and pose serious risks, says James Paulsen, chief investment strategist at The Leuthold Group.
- The gauge – which includes those working part-time for economic reasons and workers only partially participating in the labor force – currently sits at 11.7%.
- While elevated, five of the past six recessions saw higher readings, Paulsen said.
- The current downturn also shows the fastest rate of labor-market recovery of any recession since the 1980s, he added.
- Passing sweeping new relief packages could spur strong inflation and force the government to tighten conditions prematurely, Paulsen cautioned.
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The US economy is receiving fresh fiscal support…