The Employment Picture Remains Murky and Hard to Parse

Facts matter: Sign up for the free Mother Jones Daily newsletter. Support our nonprofit reporting. Subscribe to our print magazine.

Paul Krugman says that although the employment picture is looking up, it still has a ways to go. To illustrate this, he displays a chart showing the employment-population ratio for prime age workers age 25-54:

I agree that this is a telling statistic. It really does indicate that we haven’t made up much of the ground we’ve lost since 2007, so I don’t have any argument with Krugman using it. At the same time, you get a different picture if you pull back and disaggregate the data a bit. Here’s another view:

I don’t want to make too much of this, especially since I’m not sure exactly what we should make of it. But the employment-population ratio among men has been declining steadily for over half a century, and right now we’re only a point or two below the trendline for men. Conversely, participation among women plateaued starting in the mid-90s, which suggests that we’re still a good four points or so below the trendline for women.

Maybe. The question is what the long-term trend really is. I’m not sure what to say about that, but it’s been niggling at me for a very long time. Basically, I just want to caution everyone not to treat 2007 as a magic year. There’s no question that employment is still in the doldrums, but the question of where the employment-population ratio “should” be is not easy to pinpoint.

THE END...

of our fiscal year is Thursday, June 30, and we have a much larger fundraising gap than we can easily manage with only days left to go.

Right now is no time to come up short: If you value the hard-hitting, democracy-protecting, justice-advancing journalism you get from Mother Jones, please help us keep charging as hard as we possibly can with a much-needed and much-appreciated donation today.

payment methods

THE END...

of our fiscal year is Thursday, June 30, and we have a much larger fundraising gap than we can easily manage with only days left to go.

Right now is no time to come up short: If you value the hard-hitting, democracy-protecting, justice-advancing journalism you get from Mother Jones, please help us keep charging as hard as we possibly can with a much-needed and much-appreciated donation today.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate