Economic rebounds sure aren’t what they used to be. If the current rebound had been like those during 1954 – 1982, the U.S. would have already experienced a substantial rebound in employment, as shown by the shaded grey area in the chart from Goldman Sachs below. The U.S. seems to be stuck in a ‘New Normal’, one which for employment has existed since 1991.
In the last two decades, employment gains have remained weak well after the end of recessions. Worse yet 2009 takes the cake as the worst of the worst as shown by the blue line below. We clearly have a long time to wait for the significant employment gains like we used to see in 1954 – 1982.