In every month since U.S. economic (GDP) growth began to recover from the Great Recession of 2008-09, economists and policy makers have been looking for a sustained upward shift in the rate of U.S. employment growth. Every time a bit of good economic news has surfaced a chorus of economists, policy makers, and media voices cautiously hail it as evidence the U.S. is about to turn the corner on joblessness.
Every time, that hoped for corner turned out to be a mirage.
The usual economic signals don’t seem to mean what they used to mean. Employment growth seems to have become disconnected from economic growth. Many economists openly acknowledge that this pattern of recovery from economic recession is puzzling. For policy makers it is frustrating.
Everyone is looking for answers.