This morning, a release from the Washington Post provides support for the idea that the economic recovery is moving slowly and with less stability than hoped (see the Elm Street posting from June 1). The Post story indicates a rise in unemployment claims and a jobs-added pace of 54,000 in the month of May. By comparison, more than 200,000 jobs were added in April. Click here to see the release.
Implications: When the economy was moving with speed and confidence in late 2010, many people abandoned the idea that this economic recovery would occur in fits and starts… which was the common theory when we were in the middle of a deep recession. Now, people expect the recovery to be robust and long-term.
A lot of factory jobs were lost because the supply of parts from Japan was interrupted. A lot of government jobs were lost because states are trying to balance their budgets. I’m not sure any of that is too surprising. And I’m not sure how much of it could be considered permanent.
These headlines are scary… and a reminder how important it is to focus on the customers you serve, rather than the latest reports out of Washington or Wall Street.