How bad is the job market?

The numbers for the job market last Friday were not particularly good, with only 88,000 new jobs added. Note, however, that the average job creation in the current recovery is not very different from the Bush one (see graph below).
Note that, while the last recession was more severe, with a drop in jobs of 800,000 at some point (against slightly more than 200,000 in the last one), the recovery has been adding a bit less than 200,000 on average (not very different than the previous one). So unless there is more fiscal stimulus (which is very unlikely, to say the least) this recovery will also be slower than the previous (since the hole was deeper).

Comments

  1. Matias, perhaps you may wanna say something about this:
    http://www.imf.org/external/pubs/ft/weo/2013/01/pdf/c3.pdf

    Figure 3.5 is eloquent.

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