Posts filed under “Markets”
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
“We have 2 classes of forecasters: Those who don’t know… and those who don’t know they don’t know.” — John Kenneth Galbraith I’ve been making a fortune lately. (No, I don’t own any Google IPO shares). Each month, I’ve been betting on the outcome of the Non-Farm Payroll report against my economist colleagues. I’ve been…Read More
I am looking for a good (relatively clean) copy of the August 13, 1979 Business Week magazine. If anyone has located one of these, please contact me with sales information. Here’s why: Hanging on my office walls are several infamous magazine covers from days gone by. On the flip side, I tape a chart of…Read More