Employment is a lagging indicator

The newspapers and talking heads are obsessed with unemployment numbers, yet they fail to grasp that this is the last thing that will improve after a recession. More importantly, productivity has improved strongly year over year and corporate profits are up enormously. If and when people believe the economy will improve, businesses will have a stockpile of cash to spend and hire people. There are still lots of problems with the economy, but this obsession with unemployment is looking at the wrong thing.

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