Thursday, September 2, 2010
Strongest Jobs Recovery in Decades?
As compared to the last 2 U.S. recessions (1990-91 and 2001), sustained job growth actually returned faster. Unfortunately, the recent recession was so severe that even though job losses ended quicker, job growth has been at a far lesser rate than in previous recessions. Even though unemployment peaked in October 2009 at 10.1%, it has only dropped to 9.5% since. The improvement of the stock market, banks, and big businesses during a period of almost stagnant job growth has created the perception of a "jobless recovery," which is damaging to a government that from some economists' perspectives interfered too much in the private sector in attempt to restart the economy and from other economists' perspective didn't spend enough stimulus money to make the desired impact. The article gives hope that businesses will increase their hiring in the Fall as the holiday season approaches, but some economists are warning that another stimulus may be needed to prevent more job losses, which could lead to a double-dip recession.
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It is interesting that job recovery started faster but at a slower rate of improvement. This article seems hopeful that the economy will improve but there is still a lot economic recovery before we can pull ourselves out of the recession. How will the holiday season effect the job market? How permanent is that change?
ReplyDeleteAfter all, unemployment rate is going down. That is good new. Because of the hardness to find new jobs, unemployed people will improve themselves more and do their best on their new job. They will bring more profit to the economy.
ReplyDeleteHopefully with the holiday season their will be more seasonal employment which can also help, it will help circulate flow of money and possibly increase confidence in people even if it is only for a few months it really can help.
ReplyDeleteEarly 2009, M1 was a lot higher than M2 because people started to spend a lot of their money. Now, since the recession gradually got worse, people are in extreme saving mode- unfortunately now, the circular flow of money in the country had lessened. I am anxious--not excited--to see how the holiday turnout will effect the economy in terms of growth.
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