Grim Prospects Bolster Case for Aggressive Policies to Create Jobs
A new report from the Economic Policy Institute shows how jobs can remain scarce and unemployment can rise even with an economic ‘recovery’ underway. The report explains why unemployment will almost surely be at persistently high levels for years to come and argues that further action to create jobs should remain the top priority for the nation’s policymakers.
For the full report, For Job Seekers, No Recovery in Sight, by EPI economists Josh Bivens and Heidi Shierholz, click here.
“The punchline is pretty simple: jobs can be lost and unemployment can rise not only when the economy is shrinking but also when it is just not growing quickly enough – the magic number for economic growth that generates a healthy labor market is way above zero,” says Bivens. “And, if you want more jobs, then the optimal strategy is to pursue those policies that spur growth.”
“This Friday’s employment report from the Labor Department will likely show an increase in payrolls, but that won’t change the basic fact that unless policymakers take bold action, all key signs point to a very long, very slow recovery for jobs,” says Shierholz.