Today, Capital Economics’ Paul Dales declares that era over. We have officially entered the “job-full recovery” era. (Chosen excerpts by Job Market Monitor)
The main evidence: payrolls have been growing faster than GDP for the past nine months.
Dales says this is probably the result of a limit reached on productivity spending:
A lot of this is due to the slowdown in productivity growth. Since businesses made the most obvious and largest efficiency gains during the recession, there is less scope for any further improvements now. That means productivity growth is likely to remain low. Any additional increases in demand therefore need to be accompanied by further increases in employment.
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