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I think two things effect employment figures.
ReplyDeletePeople who are discouraged and gave up and some who went to much lower paying jobs or to part time work.
I more or less follow Robert Prechters theory ("Conquer the Crash")that economic boom and bust cycles are caused by social moods of the population alternating between optimism and pessimism.
Prechter's theory also said back in 2002 that a negative mood phase coming up was going to drive housing prices way down, create a depression and also world wide inter group rivalry and separatist movements.