Posted by: Ed Tittel
jobless recovery continues, jobless recovery in the US likely to persist for years, stuck between modest economic growth and miniscule job creation rates
If you’re willing to accept the conflation of jobs and observation into the word that appears in this blog’s title, you’ll also grant that such things have not been overly rosy since 2008, when the recession took real hold in the US and elsewhere. Here’s what one of my favorite news publications (The Economist) has to say about the current state of our recovery from that recession in an editorial entitled “Are we there yet?” dated 9/16/2010:
…history suggests that although nascent recoveries often wobble for a quarter or two, they rarely relapse into recession. For now, it is most likely that America’s economy will crawl along with growth at perhaps 2.5%: above stall speed, but far too slow to make such difference to the jobless rate…
And indeed, the problem with jobs right now is that while they’re growing very little by very little, that little is so small that it can’t begin to make a dent in the 8 million or so jobs lost since the recession began, not to mention the 1-2 million or more new would-be jobholders who enter the job market each year. No wonder jobs are such a major preoccupation for the general population and for the politicians who serve them (and who also face re-election at regular intervals, especially this November).
Unless the current administration can wrestle sufficient cooperation from the Republicans (like that’s going to happen) to push through some kind of major government-backed jobs program, we may be stuck in this situation of modest/minor economic growth without a real increase in jobs (the famous “jobless recovery”) for another two years or longer. In that same time, the number of jobless could grow further, not just because of the lack of new jobs being created, but also because of the numbers of new job-seekers that enter the workforce — or that try to enter the workforce, anyway — each and every year.