Employment Rate Has Not Recovered

Wall Street Journal: “The employment rate, or the employment-to-population ratio, measures the share of all potential workers who have a job. This measure stood at 62.2% on average in 2007, plunged to 59.4% in 2009 and still stands at a very low 58.9%.”

“The unemployment rate can underestimate the jobs problem because people who stop looking for work no longer count as ‘unemployed’ in the official tables.”

“In the current economy, the unemployment rate is falling but the employment rate has fallen too. What’s going on? In a word, former workers are leaving the economy or sitting on the sidelines.”

“The total post-recession drop in labor participation approaches three percentage points, but what’s notable is that the plunge has continued during the expansion. In the recession the participation rate fell only a quarter of a point, but the ongoing slide since the recession ended suggests deeper structural changes in the economy.”

 

  • Patrick12

    Interesting Graph, notice how the rates drastically plummeted when the GOP held all three branches of Gov’t.