US needs to create 30 million jobs for key ratio to reach 2000 high: DB - Business Insider

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A key labor-market ratio has tumbled near record lows — and Deutsche Bank's top economist says the US has to create a whopping 30 million jobs to reach a new all-time high

In April, the employment-to-population ratio — the percentage of those above 16 who currently have a job — fell to an all-time low of 51.3%. That means only half of working-age Americans are currently employed.

The US economy added 2.5 million jobs in May, and economists expect Thursday's jobs report to show it added another 3 million in June. That's still a long way off from recovering the 20.5 million jobs lost in April. The coronavirus pandemic devastated the US labor market, pushing unemployment up to highs not seen since the Great Depression by putting millions of Americans out of work.

Even as the US economy reopens and people go back to work, there's a long road ahead for the recovery, according to Torsten Slok, chief economist at Deutsche Bank.

 

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