Quote:
Originally posted by Hanabal
id like to know something, apparantly US economic growth has had a record year. but with record job losses etc, how can this be.
One thing i though might be the soloution, is military spending included in calculating growth, if so, then any president that declares war will look like an economic hero, which bush clearly is not
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Jobs are always the LAST indicator to recover from a downturn. Rising productivity is complicating this recovery. The more productive a worker is, the fewer workers required to produce a given output.
Typically, in a recovery, you'll see employed workers up their hours. In some cases this means overtime while in others it means salaried workers are expected to put in more "unpaid" time. Eventually companies are convinced that they need to hire more workers and employees are hired. A major trend in recent years has been to hire temps or part time workers to avoid paying medical benefits. At some point, when the growth appears real and sustainable, companies begin to hire full time workers with benefits.