Opposite Observations

GDP in 22Q1 was -1.6% annualized, 22Q2 looks to come in at -2% annualized. Yet job growth in 22H1 was superb, averaging 456K/month. How can this be? Are firms hoarding workers despite falling sales because bosses expect a mild downturn or because hiring is so tough? Maybe the GDP data will be revised up or employment data downwards. Otherwise, productivity must be sinking at 6%/year which is historically unprecedented.

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