Economics @ ITT

Unemployment : This Time It’s Different

Posted in economics, employment, macroeconomics by ittecon on April 7, 2011

Today’s employment report shows that the economy is creating jobs at a solid pace. But it also reminds us that without even stronger job growth, it will take years to erase the large jobs deficit that the 2007-2009 recession created (see chart) and to lower the unemployment rate to an acceptable level. Immediate sharp cuts in government spending of the kind that some policymakers are seeking will make it even harder to restore a healthy job market.

We have to create over 7.2 million jobs just to get payroll employment back to its level at the start of the recession in December 2007. At March’s rate of 216,000 jobs a month, that would take almost three years. It would take even longer to get back to full employment, given population growth in the years since the start of the recession.

Statement by Chad Stone, Chief Economist, on the March Employment Report — Center on Budget and Policy Priorities.

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