Quote:
Originally posted by The Larry Davis Experience
The economy is generating jobs at a rate significantly below that which we've seen during periods of similar overall GDP growth levels over the past several decades and recoveries. What in your mind has resulted in the weakening of the stimulus -> growth -> jobs causal chain? Is it just some sort of malaise based on the current war on terror which is somehow overcoming the stimulative effects of tax cuts and increased defense and security expenditures?
edited to fix tags.
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A couple of things. First, jobs are a lagging indicator, though I believe you are correct that jobs are lagging more than we historically see in times of similar growth. I posted after the 8.1% growth numbers came out that I expected the job numbers to pick up 6 to 9 months later. Jury is still out, but I remain confident. More importantly though are the increases in productivity we have seen over the last 3 years (an all-time high) coupled with an increase in the exportation of jobs.
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