By, Ron DeLegge
What is the job market is saying about the U.S. economy? And how should it affect the way you invest? Let's examine these questions together.
If you want to know why the housing market is still in a depression or why consumer spending is so fickle, you can blame the bleak employment picture.
The so-called “jobless recovery” that our generation of economists predicted is unfortunately not coming true. In fact, various measures of nationwide unemployment show that a lack of employment and underemployment is hindering economic growth. What is a “jobless recovery” and is it really possible?
Jobless Recovery 101
The term “jobless recovery” was first coined in the 1930s to describe a scenario of increases in gross domestic product (GDP) with high or rising unemployment. Today, certain economists argue that a “jobless recovery” could very well happen again because it existed in the past.
During the Great Depression unemployment remained high even though GDP statistics reflected economic growth. But is it historically accurate to describe that horrific decade from 1930-40 as a “jobless recovery?” Would individuals who lived through that period agree? Any such declarations of a “jobless recovery” during the Great Depression are highly controversial and ignore that much of the nation remained mired in poverty.