Is it any wonder that Americans are struggling through a blizzard of economic uncertainty? The type of uncertainty, incidentally, that stifles consumerism, which in turn further shackles recovery in the broader economy.
For example, in its Real Time Economics blog on Friday, the Wall Street Journal cited a very recent Labor Department report to the effect that “the share of workers who were out of a job for six months or longer fell for the third straight month”. Although, it should be noted that many economists cited in a companion article opined that the news should not be interpreted as a sign of a rapid recovery under way.
On the other hand, this morning the same blog cited the August employment trends index issued by the Conference Board, which suggests there will be a slowing in hiring in the coming months, even slower than it has been recently. Seven of the eight labor-market indicator components of the index were negative.
So, the Labor Department report seems to indicate that the job market situation may be improving. However, the Conference Board’s index suggests the opposite. And the American consumer, the backbone of a vibrant economy, is supposed to make sense of this, and even more, feel comfortable about spending money? As Al Borland famously and frequently said: “I don’t think so, Tim”.
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