Why Hiring Is So Weak

What is holding back hiring? Is it weak demand, or perhaps uncertainty about government regulation and taxes, or maybe restrained access to credit? It might be easy to say "all of the above," and for some businesses that may be true. But when we need to find the most important factors that explain, economy-wide, the reason for the large employment losses and weak hiring gains, we need to do a bit more research.

In that regard, the San Francisco Federal Reserve recently published its analysis of which of these factors was most associated with the unemployment problem. It determined that a lack of demand is the principal problem. Neither a lack of financing nor government-induced uncertainty played much of a role in explaining the unemployment woes, at least from a statistical analysis perspective. Thus, the corollary is that unemployment might fall when demand returns, not necessarily when uncertainty ends....564 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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