The trend is prevalent in USA, Japan and Western Europe. The employers are fast growing productivity by increasing use of automation. Even cheap labors don’t seem cheap, companies are shunning away from manual labor forces, low wageworkers and even outsourcing to developing countries.
The increasingly ongoing claims and Initial Jobless Claims surely substantiate the same. The employers are simply not creating sufficient jobs (particularly well paying jobs) and/or eliminating them in phase.
There is a feeling that the next phase of the lay off cycle will make the economy fall on its knees. After low wageworkers are fired in mass scale the recession which is offing has the power may turn the scene into a depression. No wonder deflation will take control of the economy then.
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