The U.S. economy, which finally posted job gains last year after three straight years of job losses, will add another 4 million jobs through 2006, say University of Michigan economists.
"The economy lost 2.7 million payroll jobs from February 2001 to May 2003, but by 2004 the ability of employers to tease more and more output out of fewer workers had about had it," said Saul Hymans, U-M professor emeritus of economics. "That plus renewed business confidence in the strength of the expansion did the trick and produced a sharp jump in jobs.
"With solid but no longer extraordinary productivity gains, hiring responds to sustained output growth during 2005 and 2006, producing healthy job gains and a gradual improvement in the unemployment rate. However, job gains in 2005 and 2006 fall well short of the 3 million jobs added per year in the 1994-2000 period."
Bernie DeGroat | EurekAlert!
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