There is no denying the fact! The job market has dealt a really rude shock to every one of us. Everyone looked at the growth in manufacturing, exports and GDP and at how the housing sector was regaining lost ground. The economic data coupled with the drop in layoffs and the growing numbers of retail workers ahead of the holiday season added to the positive expectations. All the optimistic predictions of economic recovery and consumer confidence have taken a rather hard knock with the steep fall in the expected employment numbers for December – from 196000 to 74000!
This is as unexpected as it is demoralizing. Its impact goes beyond the job market to affect investments into the economy itself. . So, what could have caused this reversal in the fortunes of the job market?
So, if the weather improves in January, we may still hope to see a revision, indicating that the job market is enjoying a more robust health than what is portrayed by the December jobs report. But, to bring unemployment down to pre-recession levels, the economy has to keep on adding jobs at 200000 a month for the next 5 years or so. Let us have a show of hands on how many think of it as feasible?
Mail (will not be published) (required)
5 × three =
Thanks for Subscribing to DCR Blog.