More People Still Looking for Work

New York Times: ‘The government counted 10.46 million Americans in February who did not have jobs and were looking for work. That’s about 3 million more people than the pre-recession level, adjusting for population growth.”

“This may seem like a basic measure of labor market slack. Instead there is general agreement that a complete recovery is beyond the power of responsible monetary policy. Fed officials estimate they can get just halfway to the pre-recession level, more or less, without causing inflation to rise above their 2 percent target.”

“The reason is that while the level of short-term unemployment has nearly returned to its pre-crisis level, long-term unemployment remains high. This is significant because the longer a person is out of a job, the harder it is to find work.”