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Chart of the Week: Estimated Labor Slack vs Nominal Unemployment Rate

Posted By Barry Ritholtz On March 8, 2005 @ 3:40 pm In Markets | Comments Disabled

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

Estimated_labor_slack [1]

Source: BOP [2]

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.

Random Items:

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Transcripts show Fed worried throughout 1999 market boom [3]

The New Radio Revolution [4]

Pre-modern America [5] 

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Ayn Rand at 100 [7]

Quote of the Day:

"He who knows nothing is confident of
everything”
-Anonymous 


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2005/03/chart-of-the-week-estimated-labor-slack-vs-nominal-unemployment-rate/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/estimated_labor_slack.jpg

[2] BOP: http://www.bopnews.com/archives/002931.html

[3] Transcripts show Fed worried throughout 1999 market boom : http://www.siliconvalley.com/mld/siliconvalley/11054479.htm

[4] The New Radio Revolution : http://www.businessweek.com/technology/content/mar2005/tc2005033_0336_tc024.htm

[5] Pre-modern America: http://www.nymetro.com/nymetro/news/columns/imperialcity/11465/index.html

[6] Gas Getting Pricier, Oil Demand Rises: http://biz.yahoo.com/ap/050305/oil_prices_3.html

[7] Ayn Rand at 100: http://www.reason.com/0503/fe.cy.ayn.shtml

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