Larry Summers expressed substantial optimism about future U.S. employment growth in a new interview with ABC.
SUMMERS: They’re starting to. We’re in a very different place than we were a year ago. A year ago, we were losing 600,000 jobs a month. Now the process of job creation has started. We expect that it will accelerate.
You know, the — the good news is that, if you look at what’s happened in the first quarter of this year, it’s hardly satisfactory, but it is running somewhat ahead of what the administration was forecasting, because our forecasts were conservative. And I’d expect continued progress in job creation.
Furthermore, we thought it was interesting how he explained that as economic prospects brighten, the discouraged unemployed start to look for work again, which increases the size of the labour force and makes it harder for the headline unemployment number to fall:
As you see progress in job creation, you tend to see unemployment go down. It’s not quite as simple as some people think, Jake, because as conditions get better, more people decide to look for work and are counted as in the labour force. So sometimes it’s frustrating and the progress doesn’t show up immediately in the unemployment rate, but it’s progress nonetheless in giving jobs to people who need them.
Business Insider Emails & Alerts
Site highlights each day to your inbox.