Friday, July 27, 2012

The magnitude of America's jobs market challenge in a graphic

The June 2012 American jobs market report is further confirmation that the US economy is stalling. The economy added a meager 80,000 jobs, and the unemployment rate remained at 8.2%. The rate of jobs addition is just about enough to keep up with population growth, but not enough to reduce the backlog of 13 million unemployed workers.

The graphic below captures the magnitude of the labour market challenge facing the US. In fact, if the US economy generates 208,000 jobs per month (well above the recent monthly job creation figures), the average monthly job creation for the best year in the 2000s, it will be well past 2020 when the labour market would have recovered to its pre-crisis lows.

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