01/23/2014|  Russell Price

By most appearances businesses are still somewhat reluctant to hire. However, one thing that businesses are even more reluctant to do…is fire.

New hiring activity across the U.S. economy is still a bit softer than we would all like to see it. However, layoff activity, as measured by the Labor Department's layoffs and discharge rate, is currently at the lowest level ever recorded for this measure first introduced in 2000. In other words, U.S. labor markets appear to be in an odd state of limbo where aggregate demand is growing just fast enough to keep businesses clinging tightly to their current employees, yet productivity improvements are allowing them to contain their new hiring amid ongoing economic uncertainty.

We also like to describe it as a situation where businesses are hiring for current demand only, rather than growth initiatives.

Note: The layoff rate is layoffs as a percentage of total employment, as sourced from the Labor Department.

IMPORTANT DISCLOSURES

This summary is based upon financial information and statistical data obtained from sources deemed reliable, but in no way is warranted by Ameriprise Financial Services, Inc. as to accuracy or completeness. This is not a solicitation by Ameriprise Financial Services, Inc. of any order to buy or sell securities. This Summary is based exclusively on an analysis of general current market conditions, rather than the suitability of a specific proposed securities transaction. We will not advise you as to any change in figures or our views. Past performance is no guarantee of future performance.

Brokerage, investment and financial advisory services are made available through Ameriprise Financial Services, Inc. Member FINRA and SIPC.

© 2014 Ameriprise Financial, Inc. All rights reserved.



The Labor Market from a Different Angle
distributed by