Gist: Job loss the story of this recession. David Leonhardt, an economics journalist with the New York Times says that layoffs are the symbol of economic struggles but, they are not the main problem.
On the first Friday of every month the Labor Department releases a report with the net jobs lost and gained for the past month. This number can be very misleading. For example, last month the economy created 4 million new jobs and lost 4.1 million old jobs with a net loss of 100,000 jobs. The firing rate should not be as big of a concern as the hiring rate. In this recession, the rate of hiring has fallen much greater than the rate of firing has increased. The economy needs to create jobs. The government can help. However, they have cut back funding in education and science and research. Corporate investments are not creating much either.
Who says that the firing rate should not be as big of a concern as the hiring rate?
ReplyDeleteThey have cut back on education (etc.), or they have TO cut back?
Who says corporate investments are not creating much?