We at Berman Larson Kane (https://www.jobsbl.com) are excited about job creation for 2005.
Well the January job numbers were disappointing with only 150,000 being created. Manufacturing continues to lose jobs with a small increase in the service sector. Unemployment numbers edged lower, but the reason for lower numbers is an increase in discouraged job-seekers that are not counted in the UE figures. So for my interpretation of the big employment picture all remains about the same.
However, I did see a bright light that was over looked by many economists. The rate of productivity growth decreased to its lowest level in several years. The meaning of low productivity growth translates into rapid job creation.
Let me try to explain. We all know that the economy has done well during the past 24 months. But unemployment has remained high and job creation numbers remained negative to slightly positive. My simple reason is that for each percentage increase in worker productivity numbers translates into unemployment remaining a percentage higher because companies are producing goods at lower personnel costs. Or increases in goods are achieved with fewer workers, good for the profit of corporations but not good for job growth.
The fact that maybe productivity gains have peaked, will translate into very rapid hiring because the only way for companies to produce additional goods will be to hire additional personnel. And this will make the unemployed happy, will make us here at BLK delirious and will create competition for good employee’s, which will increase salaries. All good things for the country and long term for the hiring corporations!
We here at Berman Larson Kane (https://jobsbl.com)are looking forward to a good year.