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Consolidating Printing Employment, Shipments End a Streak, and an Ugly Employment Report that Dresses Nice

Things are not what they seem. Streaking was not good in the 1970s, it’s definitely not good on presses, but streaking is great when it’s a growth streak in printing shipments. Unfortunately, the latter has ended, so let’s start a new one. The employment report was bad but that made interest-rate worriers happy. There’s nothing like getting statistically giddy over the numerical misfortune of others. Maybe they need to find a niche like a very happy Vancouver printer did.

Monday, June 06, 2016

The employment report had great news on the surface, the unemployment rate falling to 4.7% from 5.0%. That was the end of the good news.

Like so many reports during the recovery, the rate fell because the number of people leaving the workforce was greater than the increase of the number of people with jobs. Employment has never recovered since the recession, even more obvious once population growth is considered. The headline unemployment rate at a 4.7% level implies a robust economy with rising wages and increasing hours of employment. It is considered to be “full employment.” But “full employment” always had an “all things being equal” assumption. This full employment has been achieved with labor force exits, not just job additions.

No wonder economics confuses people.


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About Dr. Joe Webb

Dr. Joe Webb is one of the graphic arts industry's best-known consultants, forecasters, and commentators. He is the director of WhatTheyThink's Economics and Research Center.

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