It should be noted that unemployment “stabilized” in November and if the trend continues, we should see the rebound starting to take place.
Lawrence H. Summers, President Obama’s top economic advisor, predicted on Sunday that by the spring the ranks of working Americans will start to grow once again.
Jobs should continue to be lost, but at fewer rates, and at some point, the “leaner” firms will have to refill the spots that they lost due to the shrinking economy. When that happens, as simple logic tells us, job growth will hit the “zero point” and be positive thereafter.
It may not be much consolation for those who have lost their jobs, or those that have not been able to find work after graduation or being unemployed, but the economic situation has forced forward thinking firms to focus on sustained competitive advantage and ensuring costs are in line with their offerings. Peter Drucker would have recommended firms focus on innovation and investment in the future within these “uncertain times,” and those that have, will be poised for growth and ultimately the creation of jobs.
I would expect, as might seem like common sense, to see larger more innovative firms already starting to hire, and more staid industry leaders to follow suit when economic indicators are more favorable.
And this should come as welcome news to many.
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