Jobless recovery - not always

History doesn't always tell us that job growth follows well behind an economic recovery. Under Reagan once the economy pulled out of a recession, jobs were created immediately and the unemployment rate began declining. The WSJ that, "In the eight recessions between World War II and 1982, payrolls bottomed and unemployment peaked, on average, less than one and two months, respectively, after the recessions ended." It wasn't until the 1990s that we coined the phrase "Jobless Recovery" and this phenomenon is still in effect today.

from Andy Busch BMO

Interesting observation on the link between recovery and unemployment. But take a step back. Productivity is increasing, so employers are getting more work out of fewer employees. So why add employees if you are going to have to provide health care or be taxed? I would rather add new plant and borrow at low rates. If you the environment is not healthy for hiring, then it will not happen. Health is based on two factors, the revenue that can be generated from adding employees or the cost of hiring. The government is not doing anything to improve the cost of hiring. They may provide short-term contracts but a firm will execute the contracts with existing workers.