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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: i-node who wrote (821360)	12/7/2014 7:05:25 PM
From: zax	2 Recommendations Recommended By bentway Mongo2116 Read Replies (2) \| Respond to of 1583404

To: i-node who wrote (821360)	12/7/2014 7:16:27 PM
From: Mongo2116	Respond to of 1583404

WRONG AGAIN!!! By PEDRO NICOLACI DA COSTAA decline in the share of Americans holding or seeking jobs is largely the product of longer-term factors such as a rising number of retirees rather than the aftermath of a particularly awful recession, economists at the Federal Reserve board say in a new paper. The U.S. labor force participation rate was 62.9% in July, down from 66% in December 2007 when the recession began and a peak above 67% in 1999. Fed officials have long debated how much of the recent decline in labor force participation is “structural,” and therefore more intractable, or “cyclical,” the result of an unusually weak economic recovery. The difference matters for the central bank because the latter type is more likely to be reversed by Fed policies aimed at boosting economic demand, such as holding interest rates very low. The hope has been that if the economy strengthens, some people who have stopped looking for work—and therefore aren’t counted as part of the labor force—would return to the job market. But if the drop is mostly structural, then very low interest rates aren’t likely to make much difference. The new research comes down squarely on the structural side of the argument. “Much of the steep decline in the labor force participation rate since 2007 owes to ongoing structural influences that are pushing down the participation rate rather than a pronounced cyclical weakness related to potential jobseekers’ discouragement about the weak state of the labor market,” several top central bank staffers write in a paper set to be presented at a Brookings Institution conference next week. The findings are part of an ongoing evolution in thinking for a central bank that until recently gave much credence to the notion that weak demand was the primary factor holding down job market participation. In a speech last month, Fed Chairwoman Janet Yellen appeared to subtly shift her message, arguing that “along with cyclical influences, significant structural factors have affected the labor market.”