Net job creation in the U.S. economy: lessons from monthly data, 1950-2011
AbstractIn this paper, I study the monthly net job creation (NJC) at the aggregate level in the U.S. over the period 1950-2011. The paper has few important findings. First, NJC did not show a significant trend over the last 6 decades, which resulted in a fall in the NJC rate. Second, NJC is very volatile and it may change course even in the span of one month. Third, there is no clear pattern about the co-movement between NJC and the change in the unemployment rate in the U.S. Fourth, the average of total NJC and private NJC since late 2010 are significantly higher than their respective historical averages and the volatility in NJC since the end of the Great Recession is not unusual by historical standards. Fifth, the size of NJC in the first decade of the 21st century has been the lowest along the entire sample. Finally, the most frequent drop in the unemployment rate is by 0.1 percent, and drops of more than 0.2 percent should not be highly expected.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 39084.
Date of creation: 25 May 2012
Date of revision:
U.S. Net Job Creation; U.S. Unemployment Rate; U.S. Labor Force; The Great Recession;
Find related papers by JEL classification:
- E24 - Macroeconomics and Monetary Economics - - Macroeconomics: Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution
- J60 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - General
- J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-06-05 (All new papers)
- NEP-HIS-2012-06-05 (Business, Economic & Financial History)
- NEP-LAB-2012-06-05 (Labour Economics)
- NEP-MAC-2012-06-05 (Macroeconomics)
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