Chart from Economist
The plentiful supply of workers reduces the incentive for firms to hire quickly, and will allow companies to underpay well-qualified workers. Real earnings declined last year and are unlikely to experience rapid growth soon.
The growing health and education sectors, with highly specific skills requirements, can absorb only so many workers per year, and no other sector promises consistent employment growth. Without job growth, household indebtedness will linger as a problem, depressing spending and hiring. Joblessness is a trap the American labour force may not soon escape.