2019 marked the longest economic expansion in U.S. history. The economy’s been growing for more than 10 years, since June 2009 when the Great Recession lifted. Economic growth begets job creation, so think of the 2010s as the decade of expanding opportunity and prosperity for American workers.
In early 2010, the U.S. unemployment rate was a sobering 9.7%. Today, the jobless rate is 3.5%, the lowest in 50 years, and at a near-record low for African Americans and Latinos. Back in 2010, more than 6 million Americans had been out of work for more than six months. Today, that number is about 1 million.
What does 3.5% unemployment mean? It means that if you want a job, chances are good you’ll find one. The labor participation rate for people in their prime working years of 25 to 54 is 80.3%, the highest level in more than a decade. Nationally, there are many more job openings than unemployed people, according to the Labor Department’s Bureau of Labor Statistics.
The strength of the jobs economy is one of those good-news stories that doesn’t receive its due, even with the stock market in record territory. When the Brookings Institution asked 10 of its scholars to identify the most important stories in economics over the last decade, none mentioned the 50-year low in unemployment. They preferred to talk about the risk of low interest rates, income inequality and other issues. Not one word about job growth. Really?
Pessimism seems to be spread by economists and analysts who are so surprised by the longevity of this growth cycle that they spend their time trying to debunk it by anticipating the next recession. Their predictions have been wrong. Other skeptics, including those seeking the Democratic nomination for president, criticize the free market system for its excesses and instability.
Certainly this economy has weaknesses and shortcomings. There is always a potential recession lurking on the horizon or beyond, just as there is always disparity between those who become wealthy and those who struggle. But the wealthiest Americans aren’t the only ones benefiting as the economy expands. Take stock prices, for example: Gallup polling suggests that about 54% of Americans own stocks either directly or via mutual funds, pension accounts and other retirement kitties. So with the S&P 500’s gain for the year at about 29%, plenty of workers and retirees should be feeling more secure as well as prosperous.
This decade’s remarkable economic feat is that even as the growth cycle ages and unemployment falls, employers continue to create jobs — for the benefit of all Americans. As more people go to work, competition for their services intensifies and wages rise.
The question business owners, policymakers and politicians should be obsessed with going forward isn’t what’s wrong with this economy, but how to keep the growth going.
Editorial by the Chicago Tribune
Visit the Chicago Tribune at www.chicagotribune.com
Distributed by Tribune Content Agency, LLC.
Send questions/comments to the editors.
Success. Please wait for the page to reload. If the page does not reload within 5 seconds, please refresh the page.
Enter your email and password to access comments.
Hi, to comment on stories you must . This profile is in addition to your subscription and website login.
Already have a commenting profile? .
Invalid username/password.
Please check your email to confirm and complete your registration.
Only subscribers are eligible to post comments. Please subscribe or login first for digital access. Here’s why.
Use the form below to reset your password. When you've submitted your account email, we will send an email with a reset code.