On Fri, Nov 5, 2010 at 10:28 AM, Robert Munn <[email protected]> wrote:
>
> Better, but nothing like we need for a recovery. 150,000 a month barely
> keeps pace with population growth. The participation rate is at a 25 year
> low of 64.5%:
>
> http://www.zerohedge.com/article/labor-force-participation-rate-drops-25-year-low-645
>
>
> That's bad.

Oh, I agree completely. The economy is very very far from good. Or
adequate. At the same time, people are perhaps overly pessimistic
because they have bad information. Private sector jobs have been in
the positive for 10 straight months. Things seem to be ticking up a
bit in that area. As those trends continue, it will have a broader
effect as consumer demand will increase (as we've started to see)
which will fuel further private sector job growth. As those jobs
settle in, tax receipts will start to increase and the slaughter of
public sector jobs will be staunched. Those will lag private sector
job growth because of the nature of tax revenue collection and the
measures taken during the downturn. Gradually it should get back above
replace level and we'll see a decline in the unemployment rate.

Now, an excellent next question is: Will the new "natural"
unemployment rate be similar to what it was before or is the economy
we have coming out of this great recession fundamentally different in
some important ways?

Judah

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