http://www.streettalklive.com/daily-x-change/1694-the-labor-hoarding-effect.html
HOW MANY JOBS ARE AVAILABLE PER THE POPULATON GROWTH?
Furthermore, if we take a look at the 4-month average of net new hires we see the same story. Net new hires is likely signaling the peak of the employment for the current economic cycle.
The issue of "labor hoarding" is an important phenomenon that is likely obscuring the real weakness in the underlying economy. Without an increase in the demand part of the equation businesses are likely to continue resorting to further productivity increases to stretch the current labor force farther to protect profitability. However, as we may currently be witnessing, businesses may be reaching the limits of what they can do to continue increasing profits at the bottom line while revenue declines at the top. The implications for the financial markets going forward are clearly negative.
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