Home | Blog > Total Capacity Utilization to Percentage of Population Employed

Will the US rebuild substantial industrial capacity with many manufacturing jobs coming out of the Great Recession? Will jobs recover at the same rate as total capacity utilization?

The long term trends suggests NO!

Remember eventhough improved employment lags in a recovery, with the Baby Boom generation entering retirement, there will be a lower participation rate (Participation Rate = Labor force / Civilian noninstitutional population).

Starting in 2002, fewer jobs have been created as the US rebounds from a recession (red line) and since 1975, our industrial base peak capacity has declined after each recession (blue line).