On Oct. 16, Richard Grossman, chair and professor of economics, discussed the latest unemployment numbers and current state of the economy with Todd Feinburg at WTIC in Hartford. This month, the national unemployment rate has fallen to a new low—3.5%.
“Historically, and certainly for the last 10 years, the number peaked at 10% after the financial crisis, and it’s been working its way down ever since,” Grossman said. “That doesn’t mean all is wonderful if you’re in the labor force. There’s a lot of other things going on … people working part-time who would like to be working full-time … people who are doing contract work that would like to be having full-time jobs with benefits.”
Economists generally see an uptick in wages when unemployment goes down.
“Last month, the wage rate went up, but it went up by less than it had gone up in the previous month, so it suggests that even though the employment rate is low, that still hasn’t had an effect on wage. Normally we’d expect a really strong labor market to have some positive impact on wages.”
Grossman is an expert on economic history and current policy issues in macroeconomics, banking, and finance.