Feel the force flow
YOU would expect strong job growth to be accompanied by falling unemployment, but America is proving that one does not always entail the other. Over the past year, employment is up by fully 3m but the unemployment rate has stayed around 5%. In fact, a few more workers are unemployed than a year ago (see chart). The reason is that more Americans are seeking jobs. Over the past 12 months the labour-force participation rate of so-called “prime-age” workers—those between 25 and 54—is up by just under one percentage point, the fastest growth recorded since January 1989. Economists trying to spot... read more
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