Originally Posted by
relmor2003
I can. As companies downsize to meet new demands, and demand begins to increase, no company immediately goes out and rehires people. Banks are lending again, but not enough to generate new jobs. By the time they are, those jobs wont fill or be created like magic. It takes time.
If you owned a company, and you just laid off 100 people to meet shrinking demand, the second the economy gets better, would you rehire 100 people back? Of course you wouldnt. Hence, its a lagging indicator.