As of the end of March 2014, our nation faces a jobs gap of 7.4 million jobs. This chart shows how the jobs gap has evolved since the start of the Great Recession in December 2007, and how long it will take to close under different assumptions for job growth. If the economy adds about 208,000 jobs per month, which was the average monthly rate for the best year of job creation in the 2000s, then it will take until September 2018 to close the jobs gap. Given a more optimistic rate of 321,000 jobs per month, which was the average monthly rate of the best year of job creation in the 1990s, the economy will reach pre-recession employment levels by September 2016.
Each month, The Hamilton Project examines the “jobs gap,” which is the number of jobs that the U.S. economy needs to create in order to return to pre-recession employment levels while also absorbing the people who enter the labor force each month.
Private U.S. Payrolls Top Pre-Recession Peak: Chart of the Day – Bloomberg
Private employers in the world’s largest economy reached an important milestone in March: they have made up all the jobs lost as a result of the recession, and then some.
The CHART OF THE DAY shows payrolls excluding government agencies climbed to 116.1 million, surpassing the prior peak of 116 million in January 2008. Winning industries include mining and logging, education and health care, and professional services. Manufacturing and construction have lagged behind.
“Private-sector employment has popped its head out of the hole, and finally replaced the headcount lost due to the recession,” said Ward McCarthy, chief financial economist at Jefferies LLC in New York. “The labor market is the heartbeat of the economy, so when it finally gets to the point where it’s growing again, good things happen.”
Chosen excerpts by Job Market Monitor. Read the whole story at Private U.S. Payrolls Top Pre-Recession Peak: Chart of the Day – Bloomberg.