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93% Of All Jobs "Created" Since 2008 Were Added Through The Birth/Death Model

DA60

DA60

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'According to the prevailing narrative, job growth in the US, where GDP over the past decade has been on par with that in the 1930s, is one of the otherwise brighter economic indicators in a time when much of the economic data such as capital spending, productivity and especially wage growth (so critical for the Fed's future plans) has been a chronic disappointment. Today, for example, headlines blast that the US has enjoyed 80 months of continuous jobs growth with unemployment hitting 4.3% – the lowest since 2001. However, there is more to this "strong" number than meets the untrained eye.

As our friends at Morningside Hill calculate, a full 93% of the new jobs reported since 2008 - 6.3 million out of 6.7 million - and 40% of the jobs in 2016 alone were added through the business birth and death model – a highly controversial model which is not supported by the data. On the contrary, all data on establishment births and deaths point to an ongoing decrease in entrepreneurship.'

93% Of All Jobs "Created" Since 2008 Were Added Through The Birth/Death Model | Zero Hedge


Thoughts?
 
For me the birth and death model has always been rather defunct in this day and age. Its unfortunate, because the model had such promise when it was first described to me a few years back. However like most models that depend on such mass numbers to shave off data, it could not stand up to stern scrutiny.

We could possibly come up with a new business model in the near future, maybe later next year when more of the economy has partially stabilized.

But that would depend on the economy stabilizing... which as we all know is tough trick for that old dog to learn.
 
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