Capacity Utilization Rate Vs. Unemployment

This page is created to monitor the Unemployment Rate Vs. Capacity Utilization Rate.

Historically, when the capacity utilization rate goes up (blue chart goes down), the unemployment rate goes down (red chart).

We also know that a high capacity utilization rate points towards inflation. Inflation points towards a higher CPI and a higher CPI means higher average hourly wages. Higher wages point to lower unemployment. And the circle is round.