The duration of unemployment today and the slowness of the labor market's recovery are unprecedented.This observation was reinforced by Friday's bleak Labor Department unemployment report,which revealed a jobs gain of only 39,000,and an increase in the unemployment rate from 9.6-9.8%.Lisa Lynch,Dean of The Heller School for Social Policy and Management at Brandeis University in Waltham,Massachusetts,described the report as a huge surprise.Even the most pessimistic economists were not coming in with so low a number.We should be adding 120,000 jobs just to keep pace with population growth.
Dean Lynch pointed out there was much lower growth in the manufacturing sector,in spite of the demand for autos.There was also contraction in the construction and retail sectors.We did see growth in health care and restaurants and bars.
Those who are working are putting in more hours.Seeing their friends and family members out of work,they are hesitant to shop.
At this rate,it will take the labor market about 12.5 years to recover,Bloomberg Television calculated.
Lisa Lynch received her BA from Wellesley College and a PhD from the London School of Economics and Political Science.She has been in her position since 2008,and is also a Professor of Economics at Brandeis.
No comments:
Post a Comment