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Daily Archives: March 21, 2014

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March 2014
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Still the same

Official unemployment rate has gone down dramatically, but the improvement of labor market has been largely fake, as the employment-population ratio hasn’t moved much since recession ended.  See this sharp chart from John Taylor at Stanford.

emp-pop-feb-2014

You can also take a longer term perspective at this ratio below:

emp-pop ratio time series

Feel puzzled? You can find out the reason why unemployment rate and the employment-population ratio tend to diverge during this reovery here.