Why the Fed is Flummoxed by the U.S. Labor Market: A New Analysis of Employment in the Era of Secular Stagnation and Global Oversupply
In
the latest statement from the Federal Open Market Committee, Fed Chair
Janet Yellen seemed to set aside some of her earlier concern about slack
in the labor market and sounded a note of optimism that lower
unemployment signaled a stronger economy. Yet, as Daniel Alpert, a
founding member of the World Economic Roundtable, explains in his
sobering review of America's job market we should not take too much
comfort from the recent fall in the headline unemployment rate.
Alpert highlights a number of worrying trends that suggest that we still need to be concerned about slack in the labor market:
As
a result of these and other trends, Alpert argues that a decline in the
unemployment rate is not resulting in wage increases and job creation
is not translating into consumption growth.
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Thursday, November 13, 2014
Why the Fed is Flummoxed by the U.S. Labor Market: A New Analysis of Employment in the Era of Secular Stagnation and Global Oversupply
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