This article offered some encouraging facts about the current state of the economy. The writer believes consumer confidence and job growth are on the rebound based on some positive data that was released this week. In the month of December, according to government data, the fewest lay-offs occurred since the government began tracking the data in 2000. This shows that firms are retaining a larger number of their workers and are clearly not trying to shrink their businesses, a positive sign as we look to move out of the recession. Also, the most people quit their jobs in the month of December since June of 2008, indicating people are more confident about their chances of obtaining a better job and their economic status in general as people are unlikely to quit a job they have if they are concerned about these issues. The article goes on to discuss how if a deal to address our debt issues can be reached we could see major acceleration in economic growth. I agree that the economy is suffering from major fiscal drag, as businesses remain cautious in their actions as they wait to see if a deal can be reached and what that deal would mean for their respective operations. Therefore, I am optimistic about the current data that has been released but I believe we will not see major economic improvements without a fiscal deal.
http://www.cnbc.com/id/100457099
2 comments:
The fact that people are quitting their jobs willingly is definitely a good sign for consumer confidence. It also means that employers will need to replace these employees by hiring new ones, which could possibly help the unemployment rate to decrease. This, along with the current upswing in the housing market, could mean good things for the economy.
When people quit their jobs, is that because they believe they can find a better job or because their current job cannot afford their standard living? If it is the first scenario, I believe you may be right, but in second scenario, it may raise concern about the instability of the job market and the shaking economy is still on-going, maybe not as good as we expect.
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