The fundamental challenge in this recession is that the growth that
preceded it was a mirage. Bubble era borrowing created a network of
financial jobs, real estate jobs and construction jobs that collapsed
with the end of the bubble. Many of those jobs will never return.
An extremely high proportion (75%) of job losses in this recession are
permanent rather than temporary. States will need to nurture
completely new industry sectors and the infrastructure to support those
jobs, while the jobless will need retraining in new skills to
participate in those sectors.
