Job growth is sluggish partly because growth of 2.5-3% is barely above the economy's potential and labor-force growth, so it cannot reduce high unemployment; additionally job growth lags recoveries and the severity of this recession let firms make 'force adjustments' (permanent workforce reductions) that make rehiring slow.

causalpending

Speaker

John Taylor

Evidence Quote

people have used this opportunity to make some force adjustments in their workforce see that that here at Stanford see it at private firms and so that means it's a little hard to come back rapidly to to some of those jobs

Source

John Taylor on the State of the Economy 07/19/2010EconTalk
Created: 6/15/2026, 9:17:28 AM

My Notes

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