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But most of the decline reflects a shrinking labor force rather than new hiring.
A shrinking labor pool can force employers to raise wages to attract or retain workers, creating inflationary pressures.
Mr. Harris expects tepid economic growth and a shrinking labor market to persist through the fall of 2009.
Economists cautioned that this bit of seeming good news was the result of a shrinking labor force, rather than the addition of jobs.
Of course, the situation was even worse in 2009 and 2010, when nearly all of the improvement in the jobless rate was from a shrinking labor force.
Rather, it reflects a shrinking labor force, as the long-term unemployed and other jobless workers give up looking for jobs.
Similar(36)
The arrangement was a fairly common means of shrinking labor costs in the recession of the early 1980s.
But an aging population and gradually shrinking labor force risks fanning inflation in the longer term, the I.M.F. said, while low interest rates and a lack of places for savers to invest their cash mean there is a lingering risk of bubbles in the already hot property sector.
Given the already high level of social security contributions, there is no scope to place an additional burden on that shrinking labor pool.
Florida ranks last in the nation when it comes to long-term unemployment, so economists say the shrinking labor force is a natural result.
Just at the time when the country will begin to reel under the burden of its shrinking labor force and an increasingly disabled population, it will have to find a way to cope with millions of aids patients, too.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com