Thursday, July 7, 2011

Jobs: Methinks I See A Pattern

As investors contemplate tomorrow's jobs data, the accompanying chart (click image to enlarge) from McKinsey & Co. showing the state of jobs creation in the US over the last 3 economic recoveries stands out for all the wrong reasons.

Hmm, let's see. Globalization plus free trade agreements plus technological innovation plus stock oriented executive compensation schemes plus high growth in emerging markets plus control of the political and financial process = labor arbitrage, zero real wage growth (in developed economies), and what you see in the chart to your left.

I guess this is why Mr. Obama chose Mr. Immelt to help create jobs in the US.

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