Many official surveys give us important information about labor markets and unemployment, as well as other statistics. However, these surveys reveal only the net gains or losses in employment over a given period. Consequently, how many gross hires and separations lie behind the net changes is missing from these statistical releases. Data on gross flows turn up additional valuable information. In “What Do Worker Flows Tell Us About Cyclical Fluctuations in Employment?,” Shigeru Fujita uses such data to examine cyclical changes in the pace of the worker reallocation process and its effects on the U.S. labor market.
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Article provided by Federal Reserve Bank of Philadelphia in its journal Business Review.