Net job changes
Recently the numbers in job creation reports have been encouraging, showing national gains of 100,000 to 200,000 jobs monthly, but at the same time, several large companies have announced layoffs. N.C. State University economist Mike Walden explains how these two things can be happening at once.
“This may seem confusing …, but the explanation, I think, is based on the notion that we’re always seeing jobs added and lost. Even in the best of economic times, we have what economists call job churning. There (are) some economic sectors that are growing. There are some that are declining. And you’re going to get commensurate job changes there.
“For example, if you look at the economic expansion between 2002 and 2007, on average each month the government reported there was a net gain of 200,000 jobs. But that 200,000 came from a difference between 2 million jobs added and 1.8 million jobs destroyed or lost.
“So, you’re always going to have some good and some bad in the job market. What we hope — what we hope to find — is that the good outweighs the bad.”
Category: Economic Perspective