The Recovery That Wasn’t

Why the Job Market Feels So Dismal
by Edward P. Lazear @ The Wall Street Journal

First, the increase in job growth that occurred over the past two years results from a decline in the number of layoffs, not from increased hiring. In February 2009, a month during which the labor market lost more than 700,000 jobs, employers hired four million workers. In March 2011, employers hired four million workers. The number of hires is the same today as it was when we were shedding jobs at record rates.

We added jobs because hires exceeded separations, not because hiring increased.

This is why you should remain skeptical whenever Obama or any other politician declares that hundreds of thousands of jobs have been created under his watch. You need to keep in mind how such numbers are generated.

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