By Marc Chandler, Global Head of Currency Strategy, Brown Brothers Harriman
Yes this recovery is different. Yet as we have noted before, what really stands out is that unlikely previous recoveries, this one has seen the government sector shed workers. In fact, the government sector shed another 9k jobs in July, the fifth consecutive month of job losses.
In addition then to the well rehearsed reasons for the reluctance of business to expand their payrolls, like economic uncertainty, fiscal uncertainty, increase productivity, replace workers with machines, the shrinking government employment is an integral part of the US labor story.