The number of Americans seeking first-time jobless benefits, a proxy for layoffs, is lower this year than any since 1973—and some economists see that as a distressing signal.
Wall Street Journal staffer Eric Morath explores why economists believe that a tepid level of first-time applicants for unemployment assistance could be a sign that the employment economy is losing mojo and dynamism. Morath writes:
“I’m concerned with lack of turnover,” said Tara Sinclair, chief economist at job search site Indeed. “If employers are taking risks, some of them are going to fail, and that will result in layoffs. But we need businesses to try new things in order to propel better economic growth.”