Jobless Recoveries

Jobless recoveries is an all-too-frequent phrase in our modern economy.  The 3.5% growth in 3rd quarter GDP is a bit misleading as the government poured money into the economy (cash for clunkers, first-time home buyer program, etc.).  The hiring trend continues to be abysmal as somewhat expected as it is a lagging indicator. But is it becoming more of a lagging indicator?  This article from Commentary Magazine makes an observation I haven’t heard elsewhere (emphasis mine): The underlying reason for increasingly jobless recoveries in recent decades can be found in Chart 5 of the New York Fed’s report. In the early 1980s, 51 percent of industries were undergoing structural change… Read More

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