Three things stand out in my mind as to what's making job recovery so challenging in the wake of the 2008 crisis:
1. Unlike e.g. the tech crash of 2000, 2008 was a crisis of credit, the lifeblood of all other industries. Their cautiousness in beginning to lend again will make recovery and therefore jobs growth extra long.
2. The 2008 crisis forced companies to find new efficiencies. Whole layers of middle management were eliminated in many cases without any downside and remaining employees were fine working harder to keep their jobs. Those 'unnecessary' excess positions take a long time to come back. It will require companies to feel flush and to get lax on this again.
3. I think most importantly, our economy largely comes down to consumer spending and the housing bubble didn't just drive inflated housing prices; it also enabled home equity lines of credit to buy boats, etc. Coupled with loose credit card lending standards, our economy was built upon unsustainable growth in consumer credit. I don't know when such a consumer credit environment will come back, but again, it will have to be preceded by a sort of boom in the economy.
I agree that 'technology efficiency' etc. are not helping, but the heart of it are 1, 2 & 3 above.
1. Unlike e.g. the tech crash of 2000, 2008 was a crisis of credit, the lifeblood of all other industries. Their cautiousness in beginning to lend again will make recovery and therefore jobs growth extra long.
2. The 2008 crisis forced companies to find new efficiencies. Whole layers of middle management were eliminated in many cases without any downside and remaining employees were fine working harder to keep their jobs. Those 'unnecessary' excess positions take a long time to come back. It will require companies to feel flush and to get lax on this again.
3. I think most importantly, our economy largely comes down to consumer spending and the housing bubble didn't just drive inflated housing prices; it also enabled home equity lines of credit to buy boats, etc. Coupled with loose credit card lending standards, our economy was built upon unsustainable growth in consumer credit. I don't know when such a consumer credit environment will come back, but again, it will have to be preceded by a sort of boom in the economy.
I agree that 'technology efficiency' etc. are not helping, but the heart of it are 1, 2 & 3 above.