Employment is still falling pretty sharply.
While GDP has hardly surprised me, I did not anticipate last fall that employment would get so low. Even with the benefit of hindsight, I am not sure I see a complete explanation.
Part of the story is the plethora of means-tested public policies: they discourage work and raise employer costs:
- Mortgage modification
- Student loan forgiveness
- IRS enforcement of prior tax debts
- extended unemployment benefits
But likely there is more to the story: too bad I don't know more than that.
1 comment:
what about employers doing a forecast and deciding they only need 90% of the labor they have? Is that too easy, or does the government have to make them do it for you to see it? I know, I just reduced headcount at my shop by 15%...business is not there to keep everyone around...
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