Watching the Republican and Democratic conventions, you might have thought there was nothing the two parties could agree on. But you’d be wrong. They have adopted the same theory of unemployment. The only problem? That theory is wrong.
It's what economists describe as as a "mismatch" between job openings and those seeking unemployment, and some argue that it's responsible for why so many are unemployed. If those seeking realigned their expectations, got more training, or were simply willing and able to move to a different state for work, then we could bring down unemployment to more reasonable levels. But a new study shows that mismatch would lower the rate by one-third, at best.
"Offshoring" has become a major boogeyman in the 2012 campaign. But is it actually harmful for the US economy and US workers? A new paper from the London School of Economics' Center for Economic Performance suggests not.
So the ADP payroll survey -- a closely watched estimate of private-sector job growth -- came in a lot better than expected. ADP says the private-sector added 176,000 jobs on June. That's well above the 100,000 economists were predicting. And it's vastly better than the 69,000 we added in May. Is ADP right? We...don't know. But they're usually more right than wrong.