Jared Bernstein: Will the Real Unemployment Rate Please Stand Up?: Let’s be conservative and say that 2/3 of the decline in the labor force [participation] rate is “fixable,” i.e., at full employment it would eventually be reversed. Then the unemployment gap is: 6.7 + (2/3 x 3.4) – 5.5 or about 3.5 ppts (that 3.4 … Continue reading Morning Must-Read: Jared Bernstein: Will the Real Unemployment Rate Please Stand Up?