An article today titled ‘The growing case for a (U.S.) jobless recovery’ discusses recovery in the context of companies currently holding off hiring as profit outlooks improve.  This in circumstances where “firms probably have the capacity to expand production without hiring new workers (or increasing worker productivity). All these firms have to do is give more hours to existing workers, who have indicated they would be plenty eager to have them. Good for them—and good for GDP growth—but not much help on the employment front”.  The article concludes “Of course, none of this is proof positive that we (the U.S.) are in for a “jobless recovery,” but, to me (the author of the article), the odds appear to be increasing”.

The concept of a ‘jobless (economic) recovery’ having any long-term ‘legs’ makes absolutely no sense to me.  The economic and potential social ramifications of having a large percentage of an employable population out of work, out of social benefits, and with nothing but time on their hands has to result (or so I believe) in reduced retail sales, reduced domestic production of goods still manufactured in the U.S., reduced government revenues, increased U.S. National Debt, and ultimately the potential of serious social disruption.  In my view there should be far less rhetoric about ‘theoretical economic recovery’, and far more meaningful discussion about how the currently U.S. unemployed can be put back to work.  I think the consequences of continued high levels of U.S. unemployed for any length of time going forward may be brutal.

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