Skip to: Content
Skip to: Site Navigation
Skip to: Search

The Circle Bastiat

Let's leave the labor market alone

The US labor markets are enormously flexible and dynamic. So why regulate them?

By Guest blogger / May 18, 2012

In this April 2012, file photo, job seeker Alan Shull attends a job fair in Portland, Ore. Salerno argues that the US labor market doesn;t need any government intervention.

Rick Bowmer/AP/File


If we want want laborers and employers to come together to  discover and create value-productive jobs, then the prescription is simple:  leave labor markets alone and let them churn.

Skip to next paragraph

This is the institutional blog of the Ludwig von Mises Institute and many of its affiliated writers and scholars commenting on economic affairs of the day.

Recent posts columnist Caroline Baum reports some  interesting statistics drawn from the the Bureau of Labor Statistics’ job openings and labor turnovers survey, or JOLTS.  These figures illuminate the enormous flexibility and dynamism of U.S. labor markets.  Last year, 48.2 million Americans lost or left a job, while 50 million Americans found a new one.  The new hires represented 38.1 percent of total employment, which was down from 47.2 percent in 2005 at the peak of the Fed-fueled  bubble economy.   Now this figure does involve some double counting because some workers may have experienced multiple job separations and findings during the year.  Still in all this is a notable performance with the economy still languishing in the doldrums in the aftermath of a major financial crisis, the effects of which are being prolonged by government and central bank interventionism.   One can only imagine how much more creative job churning and productivity and employment growth we would have, if labor markets were completely freed from stifling government regulations and mandates as well as the massive uncertainty and distortions imposed by Fed monetary policy.

The Christian Science Monitor has assembled a diverse group of the best economy-related bloggers out there. Our guest bloggers are not employed or directed by the Monitor and the views expressed are the bloggers' own, as is responsibility for the content of their blogs. To contact us about a blogger, click here. To add or view a comment on a guest blog, please go to the blogger's own site by clicking on

  • Weekly review of global news and ideas
  • Balanced, insightful and trustworthy
  • Subscribe in print or digital

Special Offer


Doing Good


What happens when ordinary people decide to pay it forward? Extraordinary change...

Danny Bent poses at the starting line of the Boston Marathon in Hopkinton, Mass.

After the Boston Marathon bombings, Danny Bent took on a cross-country challenge

The athlete-adventurer co-founded a relay run called One Run for Boston that started in Los Angeles and ended at the marathon finish line to raise funds for victims.

Become a fan! Follow us! Google+ YouTube See our feeds!