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Americans are used to thinking that their job market is resilient: employment will rebound strongly after the recession. Workers continue to flow to industries and cities where employment opportunities are abundant. But in the past decade, the labor market has been like an older athlete, with each injury more painful and recovery taking longer. Now the economy has been recovering for more than a year, and the unemployment rate is still at a high of 10%. People worry that it's like sclerosis in continental Europe in the 1980s.
Recovery has been so slow, partly because its economy has suffered from internal damage, not skin and skin scratches. GDP declined the most during the last recession after the war, and output was still far below potential output. Few people expect to return to full employment soon, but now even conservative expectations have not been met. After the crisis, the employment rate actually fell; if frustrated employees who would have joined the job search army quit, the unemployment rate would be higher than it is now. Some economists worry that besides weak demand, there are other factors that make workers unemployable. The high unemployment rate has its own "structural" reasons.
This statement stems from the anomalies that have arisen in recent data. GDP growth has not lowered unemployment, as the Okun's law, which was proposed by economist Arthur Oaken in the 1960s, put it. The data also do not conform to the Beveridge curve. Named after British economist William Beveridge, the curve reflects the relationship between job vacancy and unemployment. The unemployment rate did not decrease with the increase of job vacancies.