Steve Roth at Asymptosis has a graph (originally from Calculated Risk) showing how jobless recoveries are getting longer and longer—in fact quite dramatically so. I think the primary reason for this is advancing job automation technology (see the post below), and I think there’s no reason at all to expect that this trend won’t continue and quite possibly accelerate in the future. Mainstream economists, of course, are oblivious—and by the time they start to see reality, things may get truly scary.
We’ve been hearing more about “jobless recoveries” over the years, but it’s pretty profound how rapidly the trend is increasing.
Months to Return to Full Employment