Let's leave the labor market alone
If we want want laborers and employers to come together聽to 聽discover and create聽value-productive jobs, then the prescription is simple:聽 leave labor markets alone and let them churn.
Bloomberg.com columnist Caroline Baum 聽some 聽interesting statistics drawn from the the Bureau of Labor Statistics鈥� job openings and labor turnovers survey, or JOLTS.聽 These figures illuminate the聽enormous flexibility and dynamism聽of U.S. labor markets.聽 Last year, 48.2 million Americans lost or left a job, while 50 million Americans found a new one.聽 The new hires represented 38.1 percent of total employment, which聽was down from 47.2 percent in 2005 at the聽peak of the Fed-fueled 聽bubble economy.聽聽 Now this figure does involve some double counting because some workers may have experienced multiple job separations and findings during the year.聽 Still in all this is a notable performance with the economy still languishing聽in the doldrums in the aftermath of a major financial crisis, the effects of which are being prolonged by government and central bank interventionism. 聽 One can only imagine how much more creative job churning and productivity and employment growth we would have, if labor markets were completely freed from stifling government regulations and mandates as well as the聽massive uncertainty聽and distortions imposed by Fed monetary policy.
