The Corner

Re: Unemployment and Growth

Of course, these two indicators need not mesh perfectly, Ramesh. But the details specifically make no sense. The growth rate in the fourth quarter was two-thirds smaller than the growth rate in the third quarter, according to government stats. And yet employers hired 200,000 more people in January as the unemployment rate plunged to 4.7 percent — January being the month following the sluggish 1.1 percent growth rate. That is wildly contradictory and the contradiction cannot be reconciled with the usual explanations, i.e., some people have stopped looking for work, employment is a lagging indicator…

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PC Culture

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