Dean Baker argues against those who believe the economy is doing so well that the Fed should raise interest rates, which it did last week. Baker focuses on two indicators: the employment rate and the alleged skills gap.
Looking at the age group 25-54 Baker finds that the employment rate is nearly three percentage points below pre-Recession levels. As he says, these are people who are not likely to be retired.
Also the employment rate is down even for those with college and advanced degrees, which suggests that the lack-of-skills argument fails to explain the still-sputtering economy. Baker’s chart below paints the picture.