Stephen Gordon updates a post on long-term unemployment in the U.S. and "unpleasant parallels to Canada's experience of the 1990's":
Long-term unemployment in Canada and the US, by Stephen Gordon: Last September, I wrote this, in a post where I made graphs comparing the number of long-term unemployed workers in Canada and the US:The more I look at the US, the more I see unpleasant parallels to Canada's experience of the 1990's - what Pierre Fortin called The Great Canadian Slump. Even after we emerged from the worst of the 1990-91 recession, we still had to deal with a large current account deficit, out-of-control government deficits and significant NAFTA-induced sectoral shifts. The outlook for the US is depressingly similar, although their sectoral shifts are associated with re-allocating resources away from construction and finance.
Here are the updated graphs for the long-termed unemployed (not seasonally adjusted) in Canada and the US:
Five months later, I think we can now agree that the US will be extremely lucky if its experience in the 2010s mirrors ours of the 1990s.