And yet the labor force participation rate is still falling


From Peter Coy, source here.  (And broken down by age here, I never find that disaggregation reassuring however, since the elderly are working more and the young less.)  Here are related comments and charts from Dylan Matthews.  Yet perhaps Felix Salmon has the clincher:

The number of multiple jobholders rose by 340,000 this month, to 7.26 million — a rise larger than the headline rise in payrolls. Which means that one way of looking at this report is to say that all of the new jobs created were second or third jobs, going to people who were already employed elsewhere. Meanwhile, the number of people unemployed for six months or longer went up by 89,000 people this month, to 4.8 million, and the average duration of unemployment also rose, to 36.9 weeks from 35.3 weeks.

Catherine Rampell discusses the rise of part-time work, very important stuff.  Here are relevant remarks by Pethoukis.  Here is more on the long-term unemployed.

By the way, my point is not to deny the “good news” aspects of the report, as summarized by Matthews and discussed elsewhere.  I would instead put it this way: we are recovering OK from the AD crisis, but the structural problems in the labor market are getting worse.  It’s becoming increasingly clear those structural problems were there all along and also that they are a big part of the real story.  On the AD side, mean-reversion really is taking hold, as it should and as is predicted by most of the best neo-Keynesian models.


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