Tag Archives: outsourcing jobs

Unemployment: Part of the Economic Cycle or Secular Shift?

Bob Huebscher just published an outstanding article on the sustained high level of unemployment in the United States.  The question that he seeks to address is whether we are in the recovery phase of a major recession or we are actually in the midst of a long-term shift in the economy.  The article calls these two possible explanations ‘cyclical’ and ‘structural.’  It is worth understanding the key factors that have resulted in the current persistent unemployment levels in order to put the recent modest reduction in unemployment into context.  Are we seeing signs of the long-awaited recovery that will bring us back to full employment or is the recent growth in employment simply variability around a long-term shift in the U.S. economy in which unemployment will remain well-above historical levels? Continue reading