Labor Market Damage Reversible, Fed Studies Show

Labor Market Damage Reversible, Fed Studies Show
NEW YORK - NOVEMBER 23: Veterans and family members wait on line to attend the 'Operation: Hire Veterans Career Fair' sponsored by the Department of Labor at the Intrepid Sea, Air & Space Museum November 23, 2009 in New York City. The job fair was expected to attract at least 2,500 applicants as the economy continues to sputter. The unemployment rate is now 14.6 percent for veterans aged 18 to 29. (Photo by Mario Tama/Getty Images)
NEW YORK - NOVEMBER 23: Veterans and family members wait on line to attend the 'Operation: Hire Veterans Career Fair' sponsored by the Department of Labor at the Intrepid Sea, Air & Space Museum November 23, 2009 in New York City. The job fair was expected to attract at least 2,500 applicants as the economy continues to sputter. The unemployment rate is now 14.6 percent for veterans aged 18 to 29. (Photo by Mario Tama/Getty Images)

Most of the damage inflicted on the U.S. labor market by the recession is reversible, according to Federal Reserve research, leaving open the possibility that additional stimulus will be effective in reducing joblessness.

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