For the first time since World War II, there are fewer jobs three years after the end of a recession than before it began. Our new Brookings report suggests that most of this flat recovery can be attributed to severe losses in housing wealth and jobs in industries such as manufacturing and construction.
Yet education–especially the balance between the demand and supply of educated workers–is the most important factor explaining long-run unemployment in metropolitan and national labor markets.
First, consider the short-run picture. As of the first quarter of 2012, the economy was down 5.1 million jobs from the first quarter of 2008. 71 percent of that jobs deficit–3.7 million jobs–is attributable to just two sectors: construction and manufacturing, which made up only 15 percent of all jobs in 2008. The massive losses in construction jobs devastated metro areas like Las Vegas, while manufacturing losses crippled Detroit and Wichita. Since manufacturing is so export-oriented, it has not helped that growth in Europe–a large trading partner–has been dismal in recent years…
A free interactive application for metro-level data on supply of educated labor, employer demand for skilled workers, and other economic trends affecting unemployment rates
Use this interactive application below for metro-level data on supply of educated labor, employer demand for skilled workers, and other economic trends affecting unemployment rates.