Lagging indicator

Unemployment is a big issue in the news these days. Remember that unemployment is a lagging indicator, meaning that the recovery will have to be well underway before employment picks up. Not many companies hire new employees until they see a pick up in sales that justifies it. So the economic pick up has to occur first.

 We don’t really know what employment should look like in a business cycle with many new types of employment. This is going to provide economists and others with better data for future guidance over time. But alas, you will have to wait. Nothing comes very quickly in economics! 🙂

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