[OPE] Employment outlook

The only trouble with the equation is that logically, if labour force growth
(specifically the employed labour force) equals zero, output growth must be
zero too.

In the US, the employed labour force stayed constant in the second half of
2010, but real GDP increased by about 2% each quarter. That does not fit the
equation.

If the employed labour force did not increase but real GDP does increase,
that's because the share of gross profit increased significantly faster than
compensation of employees

J.

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Received on Fri Jan 14 07:41:30 2011