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Why US employment will never fully recover

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July 02, 2014 america, american economy, american labour market, automation, chart, charts, dollar, economics, economy, employment, employment rate, employment recovery, employmentfigures, expectations, finance, financial crisis, historical data, history, improved automation, improved technology, jobs, jobs data, jobs figure, jobs growth, labor market, level, macro, market research, market research analyst, morningstar, nfp, nfps, non farm payrolls, non farms, nonfarm, nonfarmpayrolls, recession, recovery, reflection, research, saxo, saxo bank, saxo tv, slowdown, slowed job growth, tech, tech jobs, technology, technology industry, the states, tradingfloor.com, unemployment, unemployment rate, united states, us, us economy, us jobs, usa, usa economy, usd
Slow but steady job growth is expected to be reflected in the latest US Non Farm Payroll figures, due out this week, but research by Morningstar suggests that the job market in the States will never fully recover to its pre-financial crisis level.
   
Tim Strauts – Senior Markets Research Analyst at Morningstar, looks at the downturns in the American labour market since 1950. The historical data tracks the relationship between recessions and employment recovery. The research shows that job growth has slowed significantly in the past fifteen years. The primary reason being continuing advances in automation and technology. Since technology is only going to improve it’s expected that automation will replace a rising number of workers. Therefore, unemployment in the states will remain tepid according to Morningstar.