August 9, 2012
An Economist Explains How Fear Drives Productivity
Here’s a depressing thought: America’s productivity is rising on the backs of scared office workers.
Click to enlarge.
Note the two exponential trend failures. The first saw pessimistic exponential growth in layoffs and discharges. It eventually failed (after going parabolic!). The second saw optimistic exponential decay in layoffs and discharges. It too eventually failed.
I strongly believe that the next exponential trend on this chart will be one made of pessimism. I just can't say when it will happen. It might already be happening.
Click to enlarge.
When will the optimistic trend in quits fail too? I highly doubt that we will
*ever* get back to 2.2% per month. Let's just put it that way.
Source Data:
St. Louis Fed: Layoffs and Discharges / All Employees
St. Louis Fed: Quits / All Employees