Jobless GrowthMacro Economics

Prepared By Manu Melwin Joy

Assistant ProfessorSCMS School of Technology and Management

Kerala, India.Phone – 9744551114

Mail – manu_melwinjoy@yahoo.com

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Jobless Growth

• A jobless recovery or jobless

growth is an economic

phenomenon in which a

macro economy experiences

growth while maintaining or

decreasing its level of

employment.

Jobless Growth

• The term was coined by the economist Nick Perna

in the early 1990s.

Causes of Jobless Growth

• Economists are still divided

about the causes and cures

of a jobless recovery: some

argue that increased

productivity through

automation has allowed

economic growth without

reducing unemployment.

Causes of Jobless Growth

• Other economists state that

blaming automation is an example

of the luddite fallacy and that

jobless recoveries stem from

structural changes in the labor

market, leading to unemployment

as workers change jobs or

industries.

• Some have argued that the recent lack of job creation in

the United States is due to increased industrial

consolidation and growth of monopoly or oligopoly

power.

Industrial consolidation

• The argument is twofold: firstly,

small businesses create most

American jobs, and secondly,

small businesses have more

difficulty starting and growing in

the face of entrenched existing

businesses.