“Quantitatively, relative to the recoveries of the 1980s, 1990s, and early 2000s, cyclically adjusted output per person has grown about 1¾ percentage points per year more slowly since 2009. According to our analysis, about a percentage point of this is explained by the shortfall in productivity growth and about ¾ percentage point is explained by the shortfall in labor force participation.”"
This is why some people say that despite record highs in the stock market, the economic recovery is sub par. It’s why many people feel like there’s been no recovery at all. It’s why wages adjusted for inflation have been stagnant. It’s why declining unemployment isn’t as much as a positive as the number suggests. It’s why the fed still can’t figure out how inflation is <2% despite “low” unemployment.