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Tuesday's report shows that most of the improvement in December's net gain of 203,000 jobs stems from lower layoffs and quits, rather than a pickup in hiring. Layoffs dropped to 1.6 million in December, below the pre-recession monthly average of about 1.9 million. Last year, layoffs fell to their lowest annual total in the 10 years that the government has tracked the data, Tuesday's report showed. At the same time, the number of people quitting their jobs, while rising, is also far below pre-recession levels. That's not such a good thing. Workers tend to quit when they find another job, usually with better pay. A higher number of "quits" tends to signal a strong labor market, with lots more jobs and higher pay. With pay levels stagnant, not many jobs offer better opportunities. The result: a low-turnover labor market, with few being laid off, few quitting and moderate numbers of hires. "It's kind of like when a musical chairs game comes to a halt," said Jason Faberman, a senior economist at the Federal Reserve Bank of Chicago. "Even with decent job growth numbers, it can still feel to the average worker like a stagnant labor market." Any net job gains are still, of course, a good sign. They mean payrolls are growing, and consumer spending can grow. So can the economy. But the low turnover helps explain why the job market may not feel much better to many people. Especially those without a job.
[Associated
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