US labour market going sideways – Paul Krugman

Last week the U.S. jobs report was better than forecast, with private sector hiring more than double what economists had expected. It wasn’t enough to put a dent in the jobless rate, but it suggested businesses may be getting more confident. Unemployment is 9.6% with over 15 milion people out of work. According to Paul Krugman:
There’s not much news here. This is still a picture of a labour market going sideways. So, if you believe one survey, we’re adding jobs at a pace that, if continued, would bring us to full employment around the year 2030. And if you believe the other survey, actually, things are getting a little bit worse, because the job growth isn’t keeping up with population. This is not progress. It’s better than a big negative number, but it’s not good.

Have a look at this interview on PBS Newshour

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