How much better things would have to be to get everyone back
into the labor pool? The shape of the “demand curve” for labor tells us that,
based on the potential incentives to work. In effect, this number measures how
much labor demand is below its potential.
Estimated Labor Slack vs Nominal Unemployment Rate
click for larger chart
The difference between the Nominal Unemployment Rate and the
Labor Slack Rate can be called "asymetrical unemployment". That is,
the downward pressure on wages created by former or potential workers who have
not entered the labor pool.
Quote of the Day:
"He who knows nothing is confident of
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.