Friday, December 17, 2010

Do We Have a Structural Unemployment Problem?



This graph illustrates how different our current downturn is from previous downturns. The duration of unemployment is 25% longer than any of of our prior downturns since the Great Depression. The real estate boom provided lots of jobs that masked the loss of jobs in the industrial sector. With the end of the boom, the tide has gone out and we can see the underlying structural problem in the economy.

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