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Low unemployment is not a useful metric for 2 reasons. First is it does not account for people who have dropped out of participating in the labour market. Secon
by rorykoehler 7y ago
Low unemployment is not a useful metric for 2 reasons. First is it does not account for people who have dropped out of participating in the labour market. Second is the race to the bottom in many industries. The uberisation of everything is driving income inequality. Eventually if you stop watering the plants they stop bearing fruit. Our economy is all fruit (ie complex financial instruments generating even more dollars for rich people by moving money around) no water (livable income for the masses) these days.
- causalmodels 7y ago> First is it does not account for people who have dropped out of participating in the labour market There are alternative measures to U3 (the official unemployment rate). The U5 and U6 measures of unemployment are designed to capture discouraged workers.
- rsanek 7y agoPlus, all of the published rates are extremely highly correlated. It can be hard to agree on what number is "right", but when one rate is relatively low, so are all the other rates.