Tags: employment | recession | economy | recovery

Recovery in Employment Still 18 Months Away

By    |   Friday, 07 Feb 2014 06:41 AM

The number of Americans with jobs is still below the all-time high reached in November 2007. More than six years after peaking, the number employed is still 2 million below the all-time high. At the current pace of job creation, it will be mid-2015 before we reach that 2007 level again.

Employment has declined in the past during recessions, but has always rebounded to new highs quickly in the past.

In the 1970s and 1980s, outsourcing of American jobs was blamed for a reduction in employment. In both cases, employment quickly recovered. Elimination of middle-management jobs was blamed for a decrease in employment in the 1990s and increased automation was blamed in the early 2000s. Both times, employment recovered quickly.

Each of those factors is being blamed for the current decline in employment. Almost ignored in the debate is the fact that employment has been unable to recover since 2007, while government spending has increased dramatically to alleviate the pain of unemployment. The Federal Reserve has also worked to relieve unemployment by throwing money at the problem with quantitative easing programs that have added at least $3 trillion to their balance sheet.

Prior to the current administration, since World War II the government has not tried to fundamentally change the economy and recovery from recessions had been fairly quick.

The economy has always moved between booms and busts with an ability to correct excesses. This time is different and government activism could be delaying recovery. Until government stops trying to solve the problem, the problem of low employment is likely to continue.

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MichaelCarr
The number of Americans with jobs is still below the all-time high reached in November 2007. More than six years after peaking, the number employed is still 2 million below the all-time high. At the current pace of job creation, it will be mid-2015 before we reach that 2007 level again.
employment,recession,economy,recovery
262
2014-41-07
Friday, 07 Feb 2014 06:41 AM
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