Current situation Quote by Robert Pollin
“For any economy, there are two basic factors determining how many jobs are available at any given time. The first is the overall level of activity - with GDP as a rough, if inadequate measure of overall activity - and the second is what share of GDP goes to hiring people into jobs. In terms of our current situation, after the Great Recession hit in full in 2008, US GDP has grown at an anemic average rate of 1.3 percent per year, as opposed to the historic average rate from 1950 until 2007 of 3.3 percent.”
About This Quote
Source Speech: Economic Commentary, 2010
Economic output and the proportion of GDP allocated to hiring determine job availability.
In simple terms: Jobs depend on activity level and hiring share of GDP.
Key Takeaway
Boost hiring share to create jobs.
Themes
economics
employment
GDP
policy
growth
Mood
analytical
concerned
Type
informative
analytical
When to use this quote
- policy analysis
- business strategy
- career planning
- government budgeting
Key Concepts
Labor market dynamics
macroeconomic indicators
productivity
Questions to Reflect On
- How can policy increase hiring share?
- What sectors are most affected by low hiring rates?
A Different Perspective
High GDP does not guarantee jobs if hiring share is low.
