U.S. Employment: Less Than Meets the Eye
As we expected, November’s bleak employment report was a blip, and the pace of job creation of December is more consistent with our reading of the economy, as shown in our 2011 U.S. Outlook. The December report fell short of expectations and definitely short of what one would hope to see at this stage of the recovery. A look at the details shows that while the economy continues to create jobs on net (and one should hope so 18 months after the official end of the recession), the pace of job creation is not accelerating. A net of 1.2 million jobs were created in 2010 (only 72,000 since the official end of the recession in June 2009), after over eight million were lost during the recession. The good news is that while hires are staying level, separations are declining.
Editor’s Note: This post is excerpted from a much longer analysis available exclusively to RGE Clients, U.S. Employment Report: Less Than Meets the Eye.
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