Ahem: Unemployment Edition

The Emplyment ratio and the lack of improvement in it may best indicate a slow recover.

FRED Graph  St Louis Fed 113 1

Back a month or so ago, at Stanford, Christina Romer said:

Zale Lecture: Let me start with continued high unemployment. This has obviously been a terrible recession. The collapse of the housing bubble and the resulting financial crisis set in motion a horrible decline in spending and employment. Problem. The past two and a half years have been simply wretched for many American families. At its worst, employment was down some 81⁄2 million from its peak. Unemployment hit 10.1%. This truly has been the worst recession in the United States since the Great Depression. Now we started growing again the third quarter of 2009. Employment started expanding about a year later. So far, we have added about 1.5 million jobs. And the unemployment rate has fallen just over a percentage point. That is certainly an improvement, but it is not nearly good enough. The unemployment rate is still 8.8%. More than 13 million Americans are without a job. Six million of them have been out of work for more than six months…

Count me as unimpressed with falls in the unemployment rate 100% of which are declines in labor force participation, and 0% of which are the result of increases in the employment-to-population ratio…

Department of "Ahem!": Unemployment Edition
J. Bradford DeLong
Sat, 11 Jun 2011 02:47:00 GMT


4 responses to “Ahem: Unemployment Edition

  1. Wow.

    The data is damning.

    At least she didn’t blame Bush…at least not explicitly…

  2. I just listened to a terrific panel discussion fromn the McKinsey? McKinley? institute about the economy and mostly about jobs and what is really happening and what it means. Just terrific. Christine Rohmer was on the panel. It was on CSpan this morning, so you should be able to find it at their site. I think you’d find it very interesting.

  3. Thank you Moe! I’ll check it ouot.

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