Labor Pains

With GDP growth at 2% for the past several years and expected through Q1/14, the recent employment rise from about 150,000 net new jobs/month in summer to about 200,000/month since seems odd. It’s because firms are finally hiring because labor productivity growth has been close to zero for the past 15 months, down from 3.3% in 2009 and 2010. Thus, firms must hire more people to make more stuff.

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