Weakness In The Labor Sector, And What That Means For The Economy. (2)

The big news this week was the dramatic decline in new hires. And this gets to the very heart of this economic recovery. People who were laid off earlier in the year, combined with new employees has been the hallmark of the economic recovery so far. And this creates the virtuous cycle that economist like to talk about. New workers power the consumer sector of the economy going forward, and that all powers the economic growth cycle.