Earlier this week we took a look at the Lost Decade for the S&P 500. Business Week provides another lost decade... jobs (EconomPic detailed this trend at a higher level earlier this month):
The chart below shows the number of jobs added / subtracted by sector.Between May 1999 and May 2009, employment in the private sector sector only rose by 1.1%, by far the lowest 10-year increase in the post-depression period.
It’s impossible to overstate how bad this is. Basically speaking, the private sector job machine has almost completely stalled over the past ten years.
Health care, education, and government sectors added a total of ~7mm jobs over the past 10 years. Everything else? A drop of almost $4mm.
Source: Business Week
Two other fascinating related stats that go with this are net new jobs and cumulative net jobs. Define the first as New Job-150K/month = Net, if you believe the folklore for breakeven to offset labor force growth and productivity is that or use our own. Cumulative is the sum of Net New. My estimate is that we entered this down ~2.9M in the hole because of a weak and jobless recovery and are now about 11M in the hole !
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