How different would conditions be today economically and politically if unemployment were 7 percent instead of its current 8.2 percent? For one thing, some two million unemployed workers would have jobs, and the rate of economic growth would be comfortably above 2 percent, instead of below that pace. This scenario could have been possible if federal aid to states had been bolstered, saving hundreds of thousands of public-sector jobs…
It’s no surprise that Canada’s economy is still managing to grind out jobs, although at a much slower space than earlier in the year, and that its closest neighbour and biggest trading partner continues to struggle to match that growth. But what is surprising is how Canada’s public sector carried the employment load last month, … Continue reading »
How many more jobs would we have if the public sector hadn’t been shedding jobs for the last three years?
The most glaring weakness in the current recovery relative to previous ones is the unprecedented public-sector job loss seen over the last three years. The figure below shows that private sector job growth in the current recovery is close to that of the recovery following the early 1990s recession and is substantially stronger than the … Continue reading »