The Stagnating Labor Market: Arjun Jayadev and Mike Konczal Discover Unsettling Unemployment Trends
Roosevelt Institute Fellows Arjun Jayadev and Mike Konczal’s new Working Paper exposes common fallacies on why the labor market continues to stagnate.
Key findings: the number of people out of the labor force who are no longer trying to find a job is steadily increasing, as the normal mechanisms for reentry have collapsed. It’s now more likely for the unemployed to drop out than to find a job — the first time this has happened as far back as data can be found. Jayadev and Konczal find that underemployment has risen due to a lack of aggregate demand, not a mismatch between workers’ skills and available jobs.
Paul Krugman, Nobel laureate and New York Times columnist, suggests that former President Bill Clinton read this “important” new paper to understand the myths behind structural unemployment.
Read the full paper: “The Stagnating Labor Market.“