On Jul 14, 2011, at 4:50 PM, Jim Devine wrote:

> there may not be a contradiction: in  the 2007-09 recession,
> joblessness rose faster than people would expect given the fall in GDP
> (which is one reason why Obama's stmulus package was too small). It's
> possible that the extremely anemic recovery of real GDP is causing a
> similarly disproportionately large fall in joblessness.

True in a statistical sense - but the drop in unemployment is more the result 
of labor force withdrawal than job creation. Since the recession officially 
ended in June 2009, the unemployment rate has fallen by 0.4 point (0.3 if you 
look just at the number rounded to one place), but the participation rate has 
fallen by 1.6 points, and the employment/pop ratio is off by 1.2 points.

Doug
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