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Sun Oct 7, 2012, 05:15 AM


8% Of The Pre-Great Recession Workforce Still MIA [View all]

Last edited Sun Oct 7, 2012, 03:43 PM - Edit history (1)

Indexed per capita inflation adjusted income for employee compensation (blue line) and Indexed employment population ratio (red line)

Likely our averaged and homogenized data is missing the point - the USA economy is screwed up because 8% of the pre-recession workforce has been vaporized (the red line on the above graph is currently at 92% of the pre-recession peak).

If one is on social security, in some other social safety net, employed, or the 0.001% - the new normal may not that bad. You may pity the jobless, but you may be missing the reality that 8% loss of jobs caused the economy to lose 8% of its prime driver - Joe "the consumer" Sixpack. With over 2/3rds of the economy consumer driven, the solution is obvious - create 24 million jobs.

Since the end of World War II, the economy has not been faced with such a large employment slack.


We will leave the exploring up to you, but it is remarkable to note that the 65 and over was the only segment to experience a rising Labor Force Participation Rate. Seniors are rejoining (or never leaving) the working ranks. This might be due to the economic hardship, the desire to continue working, pension shortfalls, etc. We will be addressing the pension issue very soon. There are many more observations, but we’ll leave it at that.


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