Employment-Population ratio, how useful is it?
Several authors, in particular Brad DeLong have correctly pointed out (here, for example) that the employment-population ratio provides a good picture of the problems in the labor market. Krugman and I (see here) also used the same measure to show why the improvements in the employment situation in the current recovery have been small so far. But recently I've been poking the data, and found that there is more to it than meets the eye. Below a longer series than often presented.