As the employment rate increases, the economy staggers. Nationally, in December alone, workers increased payroll by 292,000 with the U.S. unemployment rate continuing to decrease.
Torsten Slok, chief international economist for Deutsche Bank Securities in New York, described the trend as enigmatic; “It is a real mystery how you can have nearly 300,000 new jobs created in December with the economy growing by 1 percent or less.”
Some are attributing the inconsistency to a “changing nature of the American economy,” as service industries are dominating the workforce. However, experts are still hesitant on what this means for the economy.
Certain experts are not convinced by the increased payroll, and believe the economy is very unstable, while others believe we are at a “secular stagnation” and economic growth is set to increase.
The flow of hires last year may be a sign of the American economy improving; however, no one is saying it’s a sure thing.