Recovering Lost Private Employment
Months To Return To Prior Peak*
(Dated From Trough)
*Median from 1948 to 1982 was 14 months
As for the why, the increasing amount of off shore labor used to supply domestic demand has something to do with it. Given the increased skew in the distribution of income, low consumption at the lower end of the income scale (those workers most affected by the shift in production activity) barely impacts the overall numbers. Getting out of this box will not be quick, but if the Treasury and the Fed are determined to end the strong dollar policy and perhaps offer a tax credit to firms hiring low wage workers, the economy might begin to get that recovery led by import substitution and increased exports. We can only hope.