There really shouldn't be any surprise about this to an Austrian school economist.
First, markets really do clear (even labor markets), except when there are government impediments, such as high minimum wage laws and stretches where non-workers are rewarded with extended unemployment payments.
Beyond that, it is really all about the business cycle. Austrian school business cycle theory teaches us how central bank money supply manipulation creates booms and busts. The chart above shows the manipulated boom periods following two extended busts.
Krugman, in the commentary he attaches to this chart, makes the implication that Obama is as good at running the economy as Reagan was, but the truth is this is all about Federal Reserve central bank boom-bust creations that have little to do with who is president.
-RW
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