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August 05, 2003

Why This "Recovery" is Different

This article from thestreet.com points out why the economic optimists' "jobs are a lagging indicator" mantra is missing the boat.

The reality is that companies can recover without workers benefiting. Companies are global and cost-cutting can be driven by outsourcing jobs to cheaper labor overseas. So all the numbers showing slow growth for businesses can just mean accelerating job loss for workers. And the death of manufacturing jobs seem to support that thesis of what's going on. See this graph:

No Bounce This Time? How manufacturing jobs performed following recessions

Posted by Nathan at August 5, 2003 01:52 PM