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Lack of Hiring Primary Cause of Today's Unemployment

Created on June 3, 2011

Lack of Hiring Primary Cause of Today's Unemployment

Lack of Hiring Primary Cause of Today’s Unemployment

–1.1 million

–293,000

–1.1 million

–293,000

Change in Q4 2007

2011

2010

2009

2008

HIRES

LAYOFFS

Change in Monthly Hiring and Layoffs Compared to Q4 2007, in Thousands of Jobs

Layoffs rose in the beginning of the recession, but have since come back down to normal levels. Business hiring fell sharply and still remains depressed. The lack of new hiring—not increased layoffs—is the reason unemployment remains high.

Chart 2 •  WM 3277

heritage.org

Source: U.S. Department of Labor, Bureau of Labor Statistics, “Job Openings and Labor Turnover Survey,” and Haver Analytics.