Wednesday, April 7, 2010

Has Employment Troughed?

Employment lags the business cycle.

Of course, this was a very severe recession. Also, the employment picture in recessions appears to be stretching out. Economists are not quite sure why, but we think it’s because of 1) fixed costs that slow down layoffs but also rehires, and 2) less dependence of the economy on cyclical industries (where layoffs and overtime are part of the job).

Via Paul Kedrosky’s Infectious Greed via Calculated Risk.

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