Stimulus: A Picture is Worth a Thousand... Jobs?

From Benjamin Pacini on Thursday, November 12, 2009 11:19 AM

This graph explains itself fairly well. It suggests at least two things: that the stimulus hasn’t worked, and that the economy isn’t going to be doing better anytime soon. While fewer people are losing their jobs every month, we are still far away from breaking even in unemployment. It will take even more job creation from there until we are able to shrink the unemployment rate.

What it doesn’t explain so well is the really frightening thing:

The current labor participation rate is getting lower—meaning that many of the people who can’t find jobs are simply not trying to find them anymore.

The total number of jobs in the economy looks like this:

(H/T: Greg Mankiw; Innocent Bystanders)

Permalink | Email | Print | Tags: SPENDING, STIMULUS, Federal

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What is the source of the "without" data?
>> Anthony Viola Friday, November 13, 2009 2:59 PM Report Comment

I wonder if there is any connection between extending unemployment benefits and the drop in the participation rate? Seems like those two things would be closely related.
>> Randy Savage Friday, November 13, 2009 3:24 PM Report Comment

Anthony, The top chart comes from an analysis by Christina Romer and Jared Bernstein for the White House to help push for the Stimulus. The dots were added later to reflect what actually happened. The original study is available here http://otrans.3cdn.net/ee40602f9a7d8172b8_ozm6bt5oi.pdf
>> TCH Friday, November 13, 2009 3:47 PM Report Comment

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Stimulus: A Picture is Worth a Thousand... Jobs?

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