Home > economics, political-economy > New jobs at record low…

New jobs at record low…

December 10, 2009 Leave a comment Go to comments

The data have only been kept since 2000, but all indications are that the economy is generating few new jobs relative to an admittedly short historical record.

The torrent of firings have slowed – for the moment – as the economy establishes a temporary, if unsustainable, equilibrium. But, an economy based on profit-driven (edit) social production cannot level off – it must expand or die – since profits must find an outlet for reinvestment or the entire process will collapse.

The key problem here is that, for any new investment to matter, it must result in a net addition of employment – the source of all profits depends on net new productive job creation. Jobs cannot continue to shrink, or even dry up, without shutting the engine of the economy down.

From Calculated Risk:

I’m not sure if openings are predictive of future hires (the data set is limited), but openings near a series low can’t be a positive. Separations have declined sharply, with fewer quits and layoffs, but hiring has not picked up. And quits at a series low suggests those that are employed were holding on to their current jobs in October.

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