unemployment still high.
Some things happen before a change in the economy, some happen
concurrently, and some things happen after a change - the "lagging
indicators". Employment is a "lagging indicator" of the economy.
Why does it lag? When sales start to slow down, employers don't
instantly fire workers. Other costs are reduced first (like reducing
trips, upgrading computers, and cutting bonuses). If sales continue to
decline over time, then they start the layoffs - weeks or months after
sales slowed.
Conversely, once sales pick up, businesses need to make sure the
growth is real before they invest in hiring & training new people.
Just as a footbal player's pain doesn't stop when the game ends,
addional pain does stop. Technically, there may be enough growth in
the economy now to declare an end to the recession, but there is still
more gains to be had. The pain gas stopped growing for the economy but
we still have sore muscles and headaches to deal with.
The global recession may be over, but many people's personal
recessions continue.
Posts
