74 Months to Employment Recovery (and counting)

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Jan 08 recovery severe downturns.png
Source: NYT


Floyd Norris discusses an upcoming milestone: A full recovery in employment to numerical (but not percentage) employment in the US:

“This seems likely to be the month when a new high is finally reached, ending a period that featured the largest drop in employment and the slowest recovery of any period since the Great Depression.

In February, the government reported last week, 115,848,000 people were employed by the private sector, just 129,000 fewer than the peak set in January 2008, just after what became known as the Great Recession began. That is well below the average gain in recent months.”

Several factors account for this: The enormous deleveraging process following a credit crisis is never good for either wages or job creation. Add to that the many ill advised cuts in state, local and federal hiring, and you have the near record length of time until the economy recovers its precrisis employment level.


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