Colin Barr awhile back had an article where he discussed the discouraging outlook for the U.S. labor market. It got me wondering how long it would take employment to return to the level where the number of jobs created each month had kept up all along with the population growth rate. Conventional wisdom says that the U.S. economy needs to create 125,000 jobs per month to keep up with population growth. Growing jobs at this rate each month since the start of the recession and assuming the economy starts generating 200K, 300K, and 400K jobs per month produced the following chart: (Click to enlarge)
Sigh. And to think most of this could have been avoided with more aggressive but systematic monetary policy.
This post originally appeared at Macro and Other Market Musings and is reproduced here with permission.
One Response to “How Long Until Employment Recovers?”
JPBulkoMBA • July 9th, 2011 at 11:20 am
To help accelerate the "recovery" and jump-start job growth, I've written a proposal that describes a mechanism through which we can fund a massive number of new business ventures by tapping the financial power of Wall Street to create jobs on Main Street. This approach ramps up employment quickly and puts money directly into the hands of the people who need it now: the consumers (whose spending represents 70 percent of GDP). This enormous financial turbo-boost to the economy will reinvigorate economic activity and quickly return the eight million jobs lost during the Great Recession. The purpose of this mechanism is to take a private sector proactive approach to address the expected long-term high unemployment problem.
You can read the proposal ("A Modest Proposal to Save the American Economy: Entrepreneurial Blitzkrieg as Job Creation Vehicle") and its companion piece ("The 75 Percent Solution? A Moral and Economic Imperative to Create Good Jobs NOW!") here: http://jpbulko.newsvine.com/
Joseph Patrick Bulko, MBA
