Some analysts (e.g., most recently Professor Mulligan) have stressed the disincentive effects of unemployment insurance on the unemployment rate and the level of employment. I think it useful to consider the offsetting effects arising from various effects, and hence distinguishing between the two variables. In my view, the impact of UI is more complicated than it would seem at first glance, with UI potentially increasing employment while concurrently increasing the unemployment rate. In addition, according to newer research, even if UI extends unemployment duration, it still might be welfare-enhancing. In other words, some researchers appear to have had their worldview frozen in 1990.
Category Archives: employment
Reactions to last week’s economic data
Here I offer some thoughts on last week’s numbers for employment, auto sales, and commodity prices.
The January Employment Situation: Four Pictures
Downward revision in the level of nonfarm payroll (NFP) employment; stabilization in employment measures (establishment, household, research series); aggregate weekly hours trend up.
Policies for Increasing Economic Growth and Employment
From the CBO’s report “Policies for Increasing Economic Growth and Employment in 2010 and 2011” released Jan 14, is an assessment of the boost to GDP and employment from various policies. Proper consideration of these measures are critical given the prospects for the output gap [0] and employment growth [1].
More of the same
The U.S. economy continues to recover at a painfully slow pace.
Some Aspects of the Employment Report
The net job loss in the December nonfarm payroll (NFP) is unwelcome news, but given the (upward) revision in the November figure, one shouldn’t think of this number as fixed. Figure 1 shows various employment series.
How Important Is Structural Unemployment in the Current Recession/Recovery?
Joseph Lawler at the Spectator distills the Austrian perspective on the sources of current unemployment.
Employment Bounceback?
From Peter Hooper, Torsten Slok, Christine Dobridge, “Robust growth needed to avoid jobless recovery,” Deutsche Bank Global Economic Perspectives (Dec. 9) [not online]:
The Employment Situation in Graphs
…and an initial read on monthly GDP.
Anemic recovery
Recent indictors continue to support the impression that we’re in the midst of a weak economic recovery.