Anomaly: lower GDP and lower unemployment

[Neil Stoloff]

Hi Pascal,

In your recent market comments you stated: "It is interesting to see GDP decreasing together with unemployment. It is as if more people were needed to produce less. Is this a good example of productivity, which is the basis of a capitalist economy?"

Answer: No, it's a good example of the lack of contribution to GDP that we can expect to see from low-paying service-sector jobs that are the major contributor to recent job growth in the U.S. See attached graphic.

Cheers,

Neil