An interesting view of the depth and power of market, specifically the American labor market, in by Bloomberg columnist John Berry…
According to the most recent quarterly Employment Dynamics survey, 7.69 million jobs that existed at companies last March had disappeared by the end of June. Most of them, 6.14 million, were the result of cuts at companies that reduced employment. The remaining 1.55 million jobs were at thousands of firms that went out of business.
Meanwhile, other expanding companies had added 5.99 million payroll jobs and another 1.52 million appeared at companies that had not been in business in March. In other words, in what was widely regarded as a stagnant job market, 6 million people had found a job.
All that churning left a net loss of 180,000 payroll jobs, the figure to which everyone was paying attention. That relatively small change masked the fact that roughly 12 percent of all payroll jobs were reallocated among businesses over just a three-month period.
Phenomenal really, and all of that managed with nobody really in charge!