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Thursday, October 8, 2009

Labor Force Shrinkage

EconomPic:
how uncommon is a shrinking labor force? This is the first year over year decline since the early 1960's.



And why wouldn't individuals stop looking for a job. As the chart shows below, the number of people who have been unemployed longer than half a year has spiked to record levels.



And the long-term implications via Alan Greenspan.
"People who are out of work for very protracted periods of time lose their skills eventually. What makes an economy great is a combination of the capital assets of the economy and the people who run it. And if you erode the human skills that are involved there, there is a real and, in one sense, an irretrievable loss."
Source: BLS

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