The Stagnating Labor Market, Arjun Jayadev, Mike Konczal | The Roosevelt Institute, September 19, 2010
“But ever since the financial crisis of 2008 and the following recession the labor market has broken down. Though tempered by the fiscal and monetary stimulus programs of the government, the waves of unemployment and exits from the labor force have shown the need for continuing and renewed support to bolster the stagnating labor market. In this paper we take a macroscopic view of the labor market. We find that, for the first time since we can find data on the topic, starting at the beginning of 2009 it is more likely that an unemployment person will drop out of the labor force rather than become employed. We also find that ability of the growing population outside of the labor force to find employment is declining rapidly. We also look at the fate of the underemployed, or people who are employed but arent working full time due to economic reasons. We find that the ratio of the underemployed has skyrocketed across all sectors and across all occupations, numbers that calls for more action to increase aggregate demand rather than focus on skills and structural changes.”
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