Why a Black Friday frenzy doesn’t mean jobs are coming back
Consumer spending on goods is starting to rebound, but spending on services — a key driver of job growth — is lagging significantly farther behind. The Wall Street Journal points out that spending on goods is up about 9.1 percent since the worst of the recession, comparable to what happened after the 2001 downturn and fueling some optimistic forecasts for Black Friday retailers. But spending on services is only up 2.8 percent overall, significantly lower than during previous recoveries.
As Alan Krueger, chair of the president’s Council of Economic Advisers, explains to the Journal: “Services account for about half of GDP, and over half of jobs.”