150,000 Jobs Per Month Is Not Robust Growth

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Saturday, 01 September 2012 08:02

Okay, some cheap WAPO bashing this morning, an article on Bernanke's speech at Jackson Hole, described a rate of job growth of 150,000 a month or more as "robust." Sorry, that isn't close to right.

The economy is down by more than 9.5 million jobs from its trend path. We need roughly 100,000 jobs per month to keep pace with the growth of the labor force. This means that at 150,000 jobs per month, we are making up the jobs shortfall at the rate of 50,000 a month. At this pace it will take us close to 16 years to get back to the economy's trend job growth path. A rate of job creation that gets us to full employment in 2028 is not robust.

For the young'uns out there, or those with bad memories we created 250,000 jobs per month over the last four years of the Clinton administration, and that was starting with an unemployment rate below 6.0 percent. We should not subject our economic policymakers to the soft bigotry of low expectations.