A Long Road Ahead
An economic letter from the Federal Reserve Bank of San Francisco argues that reductions in the national unemployment rate depend in part on changes in the labor force participation rate.
As the graph below shows, higher participation rates require the economy to generate more jobs to maintain and/or reduce the unemployment rate. To bring the rate to 8 percent by June 2012, for instance, the economy will need to generate between 208,000 and 294,000 jobs per month.
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