• News
  • Celebrities
  • Finance
  • Crypto
  • Travel
  • Entertainment
  • Health
  • Others

Structural v. Cyclical, Again

The question of whether the United States’ unemployment is structural (due to some industries getting bigger and others shrinking, not ameliorated much by stimulus spending or looser monetary policy) or cyclical (due to an economy-wide lack of demand, ameliorated by stimulus spending and looser monetary policy) continues to rage — with a spate of recent Paul Krugman and Ryan Avent posts.

I continue to think the United States clearly has both problems. The entire economy — basically, every state, every city, every business, everywhere — is suffering because sales are down. That problem is primary. On top of that, workers in certain shrinking sectors — most notably construction — need to find new trades.

Here’s a chart showing employment in various major economic sectors. (The x-axis is years, starting in 2005, and the y-axis shows the number of jobs relative to 2005.) Most sectors have declined, but some are much worse off than others — demonstrating the unemployment as cyclical and structural.

Unemploymentstructure-479x293.png
Unemploymentstructure-479x293.png

In an interesting related post, Mike Konczal shows that a lot of the United States’ structural unemployment is due to the housing crisis — more than due to skills mismatch. Workers that cannot sell their houses cannot move to new, better jobs. That means that those workers tend to stay unemployed for longer. Indeed, Konczal cites an IMF study showing that the country’s housing woes cause two or 2.5 times more unemployment than the skills-mismatch problem does.

Discussion & Comments (0)

    Recent Articles

    • Things You Should Know about North America

      Things You Should Know about North America

      Get to know more about North America.

    • Eurovision 2010 Paula Seling Unpredictable Contest

      Eurovision 2010 Paula Seling Unpredictable Contest

      Paula Seling's experience on the Eurovision stage led her to declare that "Eurovision is an unpredictable contest". Which may explain the success of the young Lena from Germany, about whom the predictions before the event did not offer much chances for victory.

    • VIPRow.me - The Best Sports Streaming Website Today

      VIPRow.me - The Best Sports Streaming Website Today

      Have you ever contemplated creating a user-friendly site dedicated to sports-related free live streaming channels?

    • Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      Learn How To Download, Install, And Use The Xnxubd 2022 Frame App

      XNXUBD 2022 Nvidia users are able to watch thousands of videos and other contents online. XNXUBD 2022 Nvidia New is a piece of software that enables people to watch videos online without having to pay for memberships. On a graphics card, the XNXubd also provides some of the best gaming and virtual reality experiences.

    • Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      Xvideostudio Video Editor Apk Free Download For Pc Full Version In 2022

      A new edition of the Video Editor Apk for xVideostudio.Video Studio has all the latest features, including support for multiple video download formats in HD, FHD, and even 4K resolutions.

    • 9 Best Lotion For Masturbation - Popular Choice For 2022

      9 Best Lotion For Masturbation - Popular Choice For 2022

      Masturbation is a common activity for men and women. It's a natural and risk-free way to explore your body, experience pleasure, and release sexual tension.

    • Reasons Why You Need To Stop Watching Movies From Sflix

      Reasons Why You Need To Stop Watching Movies From Sflix

      Without having to sign up or pay anything, you can watch movies online for free with SFlix. It has more than 10,000 movies and television shows.

    • Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Mom And Dad's Family History & Wife, Explained

      Coi Leray Collins (born May 11, 1997) is a rapper from the United States. Leray started publishing songs to SoundCloud in 2014, and in 2018 she released her breakthrough track "Huddy" as well as her first mixtape, Everythingcoz.

    • Listen And Download Music On MyFreeMP3 For Free

      Listen And Download Music On MyFreeMP3 For Free

      Are you in a bind and looking for a place to obtain free mp3 songs? Never again will you need to bother, since this article has everything necessary to obtain your solution. Download free music from MyfreeMP3.com, one of the world's most popular websites.