Friday, August 1, 2014

Yellen dashboard in one chart

Bloomberg graphics provides the Yellen labor dashboard in one chart. The story is consistent with the problem between cyclical and structural unemployment. The cyclical numbers are looking better. For example, non-farm payroll is better, the job opening rate is higher, and the unemployment rate is falling. However, numbers like long-term unemployment share, labor force participation, and U-6 underemployment all show there is a long-term problem. The question is whether monetary policy can solve the structural problem and whether following current policies will harm the overall economy.

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