Jobless growth

Jobless growth is occuring, as the Financial Times suggests. Productivity is part of it as we are doing more work per person. And the scalability of the more modern busines. For example, a web site that earns $10 million a year doesn’t need that many more people to earn $100 million a year. In the past, a manufacturing plant would have needed significant investment in people and equipment to increase to the revenue 10 times.

But remember the overall level of unemployment isn’t that high. Full employment is not 0% unemployed, rather somewhere around 4-5%.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s