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Positive Signs for the Job Market?

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  • Description

    Vanguard Chief Economist Joe Davis on a report on the rise in job openings.

  • Duration 4:07
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Victory but we'll take it.

And Freddie Mac is -- asking for more help but employers -- job openings hitting.

A four year high climbing to three point eight million in June does this mean the economy finally out of neutral.

Let's ask Joseph Davis chief economist.

For vanguard -- great to see you what do you make of these numbers is this significant and and -- he did tell people what's going on here job openings in the month up 57%.

Overall hiring up 19%.

Is are these key numbers.

What -- thank you -- -- I think there are very important I think it's a reminder you know for first for more than three years we've actually had a conversation with clients saying that.

Bottom up look at the private sector corporate America that.

Fundamentals were actually decent and that nevertheless recovery gonna be -- even.

But -- gonna likely remain intact as long as we could grapple with and get through some of these fiscal concerns but the United States well S and certainly in Europe but divide this is clearly good sign.

It's a good sign but we really in this country at least have not grappled with these fiscal problems -- we're still staring at sixteen trillion dollars in debt.

From the federal government.

As an economist.

-- listened to by investors how does that influence what you tell them what you say.

-- it clearly Jerry this is is a point of concern on many of our clients -- millions of clients around the world I mean we have we have set for some time that that how we.

As a nation deal and address our fiscal deficits has -- the seminal.

Investment -- economic and and social.

Issues for the decade ahead I think it's clear to really focus on the on the structural or longer term.

Debt to GDP your -- those sort of ratios and interest and any meaningful way in and quite frankly I would argue that one does not -- -- have to.

Enact fiscal austerity.

Today to -- in order to make progress.

Well you know it's interesting I mentioned before that these numbers on jobs these jolts numbers as they're -- the job openings since the recession ended.

Up 57% over half overall hiring up only 19%.

We what do you make it -- our employers saying the -- got the openings but we just don't wanna fill them right now.

Why -- you why I certainly think that there is some evidence that regulatory uncertainty uncertain with respect to future.

Tax and in federal spending.

Concerns all that it's having some evidence or some evidence from small businesses that.

Uncertainty with respect to that environment is perhaps those they're number one concern has its highs for sales or where there's just the business climate.

So there is the risk that that could you know worsen as we go for out through throughout 2012 and as we approached the elections I'm certainly concerned about that in.

Which is why I think there may be so bouts of of volatility in the financial markets and -- -- even -- It's -- throughout the year.

We're gonna -- -- go to the middle name thank you I'm not even I'm ready -- an expert like you are I can see that definitely happening.

What do what -- ask you one more quick question about the head of the Boston that he's cop calling for more stimulus saying that the Federal Reserve really needs to get out -- QE3.

Not really put a floor under this market and you say good idea.

Wow I'm actually next on that I -- I think they clear the Fed is what I would argue is fighting psychological warfare.

That they are trying to convince some of us on this program tonight.

That there is -- threat of higher inflation and and why say that's because they are still concerned about deflation risk you know wages following recession occurring.

And so they're trying to keep inflation expectations at least positive to try to avoid a Japanese style com.

No policy making is all about trade -- I still worry about.

The savers on the program those that are spokesperson near zero interest rates and some of that -- has some of the implications in the financial markets quite frankly.

With investors of recent -- -- to reach for yield in and to take on risks that may now when he.

Quite friendly -- appropriate so we we we continue to message that with clients.

Annan play a federal we don't -- Monetary policy also is all about making -- and this is clearly a trade off to the Federal Reserve continues to think thrill in this environment Joseph thanks for coming on tonight really appreciate your time.

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