Floyd Norris discusses an upcoming milestone: A full recovery of the jobs lost (numerically) in the U.S. during the recession:
This seems likely to be the month when a new high is finally reached, ending a period that featured the largest drop in employment and the slowest recovery of any period since the Great Depression.
In February, the government reported last week, 115,848,000 people were employed by the private sector, just 129,000 fewer than the peak set in January 2008, just after what became known as the Great Recession began. That is well below the average gain in recent months.
There are several reasons for the duration of this recovery: An enormous deleveraging process following a credit crisis is never good for wages and job creation. Add to that the many ill-advised cuts to state, local and federal hiring, and you can see why it took almost a record amount of time for the economy to regain the jobs it lost.
This column does not necessarily reflect the opinion of Bloomberg View's editorial board or Bloomberg LP, its owners and investors.
(Barry Ritholtz writes about finance, the economy and the business world for Bloomberg View. Follow him on Twitter @Ritholtz.)
To contact the author on this story:
Barry L Ritholtz at firstname.lastname@example.org