Unemployment and Wages: Find the Flaw
By David Henderson
Here’s a paragraph from a recent David Leonhardt story in the New York Times:
In Germany and Canada, some companies and workers have averted layoffs by agreeing to cut everyone’s hours and, thus, pay. In this country, average wages for the employed have risen faster than inflation since 2007, which is highly unusual for a downturn. Yet unemployment remains terribly high, and almost half of the unemployed have been out of work for at least six months. These are the people bearing the brunt of the downturn.
There’s one word in the above that is quite jarring. What’s the word? For full credit, give a brief explanation for your choice.
HT to Tyler Cowen for mention of article, although he focused on something else in it.