In judging the degree of slack in the economy, policymakers must determine the origin of any increase in the unemployment rate - specifically, how much of it is due to a cyclical slowdown (driven by the broader economy) as opposed to a structural realignment in production (driven by a shift in...

The current recovery has seen steady growth in output but no corresponding rise in employment. A look at layoff trends and industry job gains and losses in 2001-03 suggests that structural change - the permanent relocation of workers from some industries to others - may help explain the stalled...