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Visualizing the Link Between Unemployment and Recessions

by Marcus Lu
This post is by Marcus Lu from Visual Capitalist

history of unemployment and recessions

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The Surprising Link Between Unemployment and Recessions

The U.S. labor market is having a strong start to 2023, adding 504,000 nonfarm payrolls in January, and 311,000 in February.

Both figures surpassed analyst expectations by a wide margin, and in January, the unemployment rate hit a 53-year low of 3.4%. With the recent release of February’s numbers, unemployment is now reported at a slightly higher 3.6%.

A low unemployment rate is a classic sign of a strong economy. However, as this visualization shows, unemployment often reaches a cyclical low point right before a recession materializes.

Reasons for the Trend

In an interview regarding the January jobs data, U.S. Treasury Secretary Janet Yellen made a bold statement:

You don’t have a recession when you have 500,000 jobs and the lowest unemployment rate in more than 50 years

While there’s nothing wrong with this assessment, the trend we’ve highlighted suggests that Yellen may need to backtrack in the near future. So why do recessions tend to begin after unemployment bottoms out?

The Economic Cycle

The economic cycle refers (Read more...)

Visualizing California’s GDP Compared to Countries

by Aran Ali
This post is by Aran Ali from Visual Capitalist

How California's GDP exceeds ten select countries

California’s GDP Compared to Countries

Comedian Trevor Noah once said America is fifty little countries masquerading as one.

From an economic sense, this might carry some truth. When looking at the economic output of each state, especially the largest and wealthiest ones, they often compare to or even exceed the GDPs of entire nations.

To illustrate, this visual from StatsPanda looks at California’s $3.36 trillion GDP using data from The World Bank and compares it to 10 sizable country economies. Let’s take a closer look.

Sizing Up California’s GDP in 2021

California’s $3+ trillion GDP is an enormous figure in its own right, so it’s no surprise that it is larger than certain nations’ economic output.

But even when comparing with economies like Malaysia, Colombia, and Finland, all among the top 50 countries by GDP, California stands tall.

CountryGDP (2021 USD)
🇲🇾 Malaysia$372B
🇭🇰 Hong Kong$369B
🇻🇳 Vietnam$366B
🇮🇷 Iran$359B
🇵🇰 Pakistan$348B
🇨🇱 Chile$317B
🇨🇴 Colombia$314B
🇫🇮 Finland$297B
🇷🇴 Romania$284B
🇨🇿 Czechia$281B
Total$3.31T
California$3.36T

What’s more, these 10 countries are quite densely populated, with a combined population of 653 million compared to California’s 39 million total.

A Closer Look At California’s Economy

What makes California’s GDP so vast and their economy so powerful?

Relative population is a big factor, as the state is the most populous in the U.S. with roughly 12% of the country’s population calling it home. But since California’s GDP makes up over 15% of the country’s economic output, there (Read more...)

Mapped: The Largest 15 U.S. Cities by GDP

by Avery Koop
This post is by Avery Koop from Visual Capitalist

map of u.s. cities by gdp

Mapped: The Largest 15 U.S. Cities by GDP

The United States has the largest GDP in the world in nominal terms, and urban areas are a major contributor to the country’s economic might. In fact, metropolitan areas account for roughly 90% of U.S. economic output.

In this visual we’ve ranked the economic output of the top 15 U.S. cities from New York City to Minneapolis, using data from the U.S. Bureau of Economic Analysis. The data covers 2021, which is the most recent release from BEA.

It’s important to note that the data considers entire surrounding metropolitan areas, so as an example, New York City includes neighboring population centers such as Newark, NJ, as well as Jersey City⁠—reaching a GDP of nearly $2 trillion.

Measuring a city’s economy at the metro level can provide a more accurate representation of its economic activity. This is because the metropolitan areas include not only the central city but also the surrounding suburban and rural areas that are economically connected to it.

America’s Economic Hubs

There are some obvious winners when it comes to the largest U.S. cities by GDP, including NYC, Los Angeles, Dallas, and San Francisco.

In the table below, we’ve listed each of the 384 metropolitan areas out of the dataset all the way down to last place, Sebring-Avon Park, Florida, alongside respective ranks and GDP:

RankCityGDP
#1New York-Newark-Jersey City, NY-NJ-PA$1,992,779,274
#2Los Angeles-Long Beach-Anaheim, CA$1,124,682,354
#3Chicago-Naperville-Elgin, IL-IN-WI$764,583,227
#4San Francisco-Oakland-Berkeley, CA$668,677,573
(Read more...)

Ranked: Who Are the Richest People in Africa?

by Pallavi Rao
This post is by Pallavi Rao from Visual Capitalist

This graphic ranks the richest people in Africa. Aliko Dangote from Nigeria leads the group.

Ranked: Who Are the Richest People in Africa?

The African continent is home to 46 billionaires, the second-lowest total of any global region.

The number of wealthy individuals in Africa is growing, however. Total private wealth is expected to rise 30% over the next decade, led by growth in the billionaire and millionaire segments.

Visualized here are Africa’s richest, using data collected by Forbes, on billionaires who reside on the continent and have their primary business there.

Breaking Down Africa’s Billionaires

The richest man in Africa is also the richest Black man in the world. Once a small sugar trader, Aliko Dangote now has a net worth of $13.5 billion. He is the 86th richest person in the world, and single-handedly makes up 25% of the total wealth of African billionaires.

His company, the Dangote Group is now an African conglomerate with interests in a range of sectors, including sugar, cement, and real estate.

RankNameNet Worth (billions, USD)IndustryCitizenship
1Aliko Dangote$13.5Manufacturing🇳🇬 Nigeria
2Johann Rupert & family$10.7Fashion & Retail🇿🇦 South Africa
3Nicky Oppenheimer & family$8.4Metals & mining🇿🇦 South Africa
4Abdulsamad Rabiu$7.6Diversified🇳🇬 Nigeria
5Nassef Sawiris$7.3Construction & Engineering🇪🇬 Egypt
6Mike Adenuga$6.3Diversified🇳🇬 Nigeria
7Issad Rebrab & family$4.6Food & Beverage🇩🇿 Algeria
8Naguib Sawiris$3.3Telecom🇪🇬 Egypt
9Patrice Motsepe$3.2Metals & mining🇿🇦 South Africa
10Mohamed Mansour$2.9Diversified🇪🇬 Egypt
11Koos Bekker$2.6Media & Entertainment🇿🇦 South (Read more...)

Consumer Price Inflation, by Type of Good or Service (2000-2022)

by Nick Routley
This post is by Nick Routley from Visual Capitalist

Chart shows CPI price inflation since 2000

Consumer Price Inflation, by Type of Good or Service (2000-2022)

The Consumer Price Index (CPI) provides a steady indication of how inflation is affecting the economy. This big picture number is useful for policymakers and professionals in the financial sector, but most people experience inflation at the cash register or checkout screen.

Since the start of the 21st century, U.S. consumers have seen a divergence of price movements across various categories. Nowhere is this better illustrated than on this chart concept thought up by AEI’s Mark J. Perry. It’s sometimes referred to as the “chart of the century” because it provides such a clear and impactful jump-off point to discuss a number of economic forces.

The punchline is that many consumer goods—particularly those that were easily outsourced—saw price drops, while key “non-tradable” categories saw massive increases. We’ll look at both situations in more detail below.

Race to the Top: Inflation in Healthcare and Education

Since the beginning of this century, two types of essential categories have been marching steadily upward in price: healthcare and education.

America has a well documented “medical inflation” issue. There are a number of reasons why costs in the healthcare sector keep rising, including rising labor costs, an aging population, better technology, and medical tourism. The pricing of pharmaceutical products and hospital services are also a major contributor to increases. As Barry Ritholtz has diplomatically stated, “market forces don’t work very well in this industry”.

Rising medical costs have serious consequences for the U.S. population. (Read more...)

VC pace is picking up, messy earnings results, and Startup Tip of the Week: How startups land…

by MPD
This post is by MPD from @MPD - Medium

VC pace is picking up, messy earnings results, and Startup Tip of the Week: How startups land partnerships Part 2

Here’s what’s covered on this week’s pod:

  • Startup Tip of the Week: How startups land partnerships Part 2
  • Messy corporate earnings results
  • Is the January bump in the economy the start of a trend?
  • A lack of mega rounds
  • The aftermath of January’s job data

Links:

Listen via your preferred platform here.

*DISCLAIMER*

Interplay Family Office LLC (“Interplay”) is registered as an investment adviser with U.S. Securities and Exchange Commission (“SEC”). Registration of an investment adviser does not imply any level of skill or training. Information about the qualifications and business practices of Interplay is available on the SEC’s website at www.adviserinfo.sec.gov._ Interplay only transacts business in states where it is properly registered or is excluded or exempted from registration requirements. Offering of asset management services through Interplay is pursuant to an investment advisory agreement. The views expressed in this podcast/vodcast are subject to change based on market and other conditions. The podcast/vodcast may contain certain statements that may be deemed forward looking statements. Please note that any such statements are not guarantees of any future performance and actual results or developments may differ materially from those projected. Any projections, market outlooks, or estimates are based upon certain assumptions and should not be construed as indicative of actual events (Read more...)

Ranked: America’s Best Places to Work in 2023

by Selin Oğuz
This post is by Selin Oğuz from Visual Capitalist

best places to work 2023

Ranking America’s Best Places to Work

What better way to know more about a company’s work culture than to hear from those who’ve already been on the inside?

In the above graphic, we dissect how America’s top employers have changed over the last five years based on employee reviews on Glassdoor, a website that allows current and former employees to anonymously review their employers on things like company culture, pay, benefits, diversity, and more.

Tech Fares Best

Despite widescale layoffs in 2022, technology companies made up more than 40% of Glassdoor’s Best Places to Work list in 2023. Gainsight, a customer success software company founded in 2009, entered the top 15 ranking for the first time in five years and took the number one spot as the year’s best employer.

The dominance of technology companies in Glassdoor’s Best Places to Work list is nothing new, though. Companies like HubSpot and NVIDIA are staples on the list, with consistent praise from their employees when it comes to pay, benefits, leadership, and career growth.

Rank20192020202120222023
#1Bain & CompanyHubSpotBain & CompanyNVIDIAGainsight
#2Zoom Video CommunicationsBain & CompanyNVIDIAHubSpotBox
#3In-N-Out BurgerDocuSignIn-N-Out BurgerBain & CompanyBain & Company
#4Procore TechnologiesIn-N-Out BurgerHubSpoteXp RealtyMcKinsey & Company
#5Boston Consulting GroupSammons Financial Group CompaniesMcKinsey & CompanyBoxNVIDIA

While tech tends to be popular among employees, the industry isn’t the end-all-be-all when it (Read more...)

Charted: The Global Decline in Consumer Confidence

by Freny Fernandes
This post is by Freny Fernandes from Visual Capitalist

Declining Global Consumer Confidence in 2022

Charting the Global Decline in Consumer Confidence

Our plans to buy new things, travel, invest, and save money, all rely on one crucial factor—our ability to pay for it.

This ability in turn is dependent on not just our current savings, but our expected income and confidence in the economy, i.e. consumer confidence.

This graphic by Gilbert Fontana uses OECD data from 2019‒2022 to chart the rise and fall of consumer confidence in nine major economies.

What is Consumer Confidence?

Measured at a base value of 100, the Consumer Confidence Index takes consumers’ expectations and sentiments about their financial futures into account to indicate household consumption and saving patterns in the future.

An indicator above 100 means that there is a boost in people’s confidence towards economic prospects. This means that they are less likely to save and more inclined to spend money in the near future.

On the other hand, a value below 100 indicates that consumers are pessimistic about their economic standing in the future. This can result in them saving more and spending less.

Inflation, job losses, and expectations of a not-so-bright financial future can shake this confidence, making consumers think twice about their consumption.

Global Consumers are Becoming Pessimistic

After falling down and quickly recovering during the COVID-19 pandemic in 2020, consumer confidence seems to be trending downwards across the globe.

CountryConsumer Confidence (Oct 2021)Consumer Confidence (Oct 2022)
🇫🇷 France100.896.5
🇩🇪 Germany101.195.9
🇮🇹 Italy102.896.8
🇯🇵 Japan99.096.7
🇬🇧 UK100.7 (Read more...)

Charted: U.S. Egg Prices More Than Double in 2022

by Pallavi Rao
This post is by Pallavi Rao from Visual Capitalist

This chart shows the increase in the national average price of a dozen Grade A eggs in the U.S. in 2022

Charted: U.S. Egg Prices Double in 2022

Eggs are a staple food for many countries around the world, and the U.S. is no exception. Americans eat between 250‒280 eggs a year on average.

Eggs are also easy to cook, protein-dense and supply many daily vitamins needed for healthy living, making them a popular meal or ingredient. So when egg prices rise, people notice.

MetalytIQ charted the rapid rise of egg prices in the U.S. during 2022, using data from the U.S. Bureau of Labor and Statistics (BLS).

Eggs-asperating Prices

Over the course of 12 months, the national average price for a dozen large Grade A eggs more than doubled, to $4.25 in December from $1.93 in January.

Egg Prices Per Month (2022)Price per dozen
January$1.30
February$2.10
March$2.50
April$2.52
May$2.86
June$2.71
July$2.94
August$3.12
September$2.90
October$3.42
November$3.59
December$4.25

The biggest culprit has been an avian flu outbreak that resulted in 43 million chickens culled to prevent the spread of the disease.

This led to a severe shortfall in egg supply. Egg inventories in December had fallen by one-third compared to January. Combined with increasing demand during the holiday season, prices skyrocketed and empty shelves became apparent in some states.

This is not the first time avian flu has disrupted the industry.. In 2015, a similar outbreak pushed egg prices up 40% in nine months, reaching a high of $2.97 per dozen eggs in September (Read more...)

The $16 Trillion European Union Economy

by Pallavi Rao
This post is by Pallavi Rao from Visual Capitalist

Chart showing a breakdown of the European Union economy by country

The $16 Trillion European Union Economy

The European Union has the third-largest economy in the world, accounting for one-sixth of global trade. All together, 27 member countries make up one internal market allowing free movement of goods, services, capital and people.

But how did this sui generis (a class by itself) political entity come into being?

A Brief History of the EU

After the devastating aftermath of the World War II, Western Europe saw a concerted move towards regional peace and security by promoting democracy and protecting human rights.

Crucially, the Schuman Declaration was presented in 1950. The coal and steel industries of Western Europe were integrated under common management, preventing countries from turning on each other and creating weapons of war. Six countries signed on — the eventual founders of the EU.

Here’s a list of all 27 members of the EU and the year they joined.

CountryYear of entry
🇧🇪 Belgium1958
🇫🇷 France1958
🇩🇪 Germany1958
🇮🇹 Italy1958
🇱🇺 Luxembourg1958
🇳🇱 Netherlands1958
🇩🇰 Denmark1973
🇮🇪 Ireland1973
🇬🇷 Greece1981
🇵🇹 Portugal1986
🇪🇸 Spain1986
🇦🇹 Austria1995
🇫🇮 Finland1995
🇸🇪 Sweden1995
🇨🇾 Cyprus2004
🇨🇿 Czechia2004
🇪🇪 Estonia2004
🇭🇺 Hungary2004
🇱🇻 Latvia2004
🇱🇹 Lithuania2004
🇲🇹 Malta2004
🇵🇱 Poland2004
🇸🇰 Slovakia2004
🇸🇮 Slovenia2004
🇧🇬 Bulgaria2007
🇷🇴 Romania2007
🇭🇷 Croatia2013

Greater economic and security cooperation followed over the next four decades, along with the addition of new members. These tighter relationships disincentivized conflict, and Western Europe—after centuries of constant war—has seen unprecedented peace for the last 80 years.

The modern version of the (Read more...)