The budget deficit isn’t the only gap that should worry US policymakers.
Consider: The U.S. lost 8.8 million private sector jobs during the Great Recession. Since the beginning of the jobs recovery, we have gained back 6.8 million, leaving a gap of about 2 million. As economist Michael Darda calculates, if average monthly job gains remain close to the 12-month average of 180,000 for the private sector, the level of private sector jobs will rise to an all-time high in just under one year.
But even then, private-sector jobs will still be way below the 1990-2007 trend. Currently the shortfall is nearly 12 million missing jobs. The “jobs gap” remains a frightening maw gobbling up the hopes and dreams of American workers.