The Single Most Accurate Indicator of Labor Market Health

[Harshaw]

The subject line is the headline; I would have used "A Stark Graphic Showing Why This Anemic Job Growth Isn't Near Enough."

From the Mercatus Center at George Mason U:

The Single Most Accurate Indicator of Labor Market Health | Mercatus

So, what kind of labor market recovery have we seen over the past three years? As the graph shows, the answer is simple: NONE. Job growth hasn’t been strong enough to support our growing population. The employment-to-population ratio was 59.4% three years ago. It hit a 25-year low of 58.5% in October of 2009, and yet it remains at just 58.6% today.


To know what kind of job growth we need for economic recovery, we must first realize that the United States is still a growing nation. Each month, the working-age population grows by an estimated 180,000 people. Simply to support this growing population, we need to add at least 130,000 new jobs. With anything less, we fall further behind. No matter what the other economic data indicates, a true labor market recovery requires job growth strong enough to consistently raise the employment-to-population ratio. This would mean adding at least 250,000 new jobs per month, every month, for years.

 

[Lord Tammerlain]

I would suggest using labor force participation rate as a better indicator. As it accounts for specific demographics that would present an inaccurate interpretation of the employement status

 

[DaveFagan]

I don't believe we have anywhere near enough jobs and that the participation rate will vary with job availability more than any other factor. The Great and Inimitable GWShiiteForBrains created problems that may require a generation to solve, repair, find, and generate a new economic paradigm. I personally believe that a forced response to imminent catastrophe caused by Global Warming is our best hope for the future. It creates renewable energy workforces as the only viable solution. Too bad this couldn't happen with legislative good judgement and common sense. It is also the reason that corporations that paid to have Anti Global Warming papers written should be prosecuted. Keerist, so should the initiators of torture. That needs be at the highest level.