David Leonhardt’s column – on the front page of the Business Day section of The New York Times – is something you should get in the habit of reading every Wednesday.
This week, he looked at how recoveries differ around the world: GDP and profits are recovering more quickly in the U.S., while employment is recovering more quickly in other countries.
He offers some speculation about why that might be, but nothing very definitive.
His biggest argument is that we’ve had 3 “jobless recoveries” in a row because labor markets are dominated by management decisions in this country. Maybe so.
One thing he doesn’t discuss – and I wish he had – is labor force participation in the various countries. Labor force participation rates tend to be quite high in the U.S., and perhaps this means we have more workers who are only tenuously attached to the workforce in the first place. But, I’m speculating …