Structurally impaired jobs vs. non-impaired jobs

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One way to look at the US job market is to break it up into two components: jobs generated by structurally “impaired” and “non-impaired” sectors. Credit Suisse defines structurally impaired sectors to “include real estate related industries, finance, manufacturing, and the state and local government sector.” These are the sectors that at least in part rode the “bubble” economy wave. Many of these jobs were credit dependent, with growth beyond what the economy could sustain naturally.

The chart below shows the job creation and loss of the two components. The structurally impaired sector jobs created during the period of over-capacity growth simply never returned.  The sectors were highly credit dependent and with all the deleveraging taking place, the jobs are not likely to come back any time soon…

On the other hand job growth of the non-impaired sectors has almost returned to the pre-crisis levels.

Could it be that 2011 is what macroeconomic recovery looks like, minus the remaining structural problems?  Hat tip goes to FT Alphaville for the pointer, and here is my earlier post on the disaggregated aggregate demand.


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