The Economy and Employment

Almost everyday I hear one economist or another saying the economy is getting better. Of course, I don't think they live in the same world I do when I see that over 700,000 people lost their jobs last month which represents an increase of about 75,000 over February. And, I am reading where thousands of more people are losing their jobs this month.

Let me give you another does of reality: It does not matter if the economy is getting better if you are out of a job. The economy will improve - there is no doubt about that. Are we at the bottom? I don't know.

But, I do know that even if the economy does improve, employment is the LAST to feel it. Factory orders will improve. Retail sales will improve. All of the indicators will improve - politicians and business leaders will be trumpeting the good news from the roof tops. However, hiring will lag far behind the improving economy because companies will work people over time before they begin hiring. Why? They don't want to hire until they see the recovery is real.

So, just because you hear the economy is doing better, do not expect hiring to expand immediately. It's going to take a long time to put seven million people back to work.