I recommend this practical language explanation of the labor market.

First, the increase in job growth that occurred over the past two years results from a decline in the number of layoffs, not from increased hiring.
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We added jobs because hires exceeded separations, not because hiring increased.
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At any point in the business cycle, even during a recession, American firms still hire a huge number of workers. That’s because most of the action in the labor market reflects “churn,” the continual process of replacing workers, not net expansion or contraction of employment.
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When the labor market creates 200,000 jobs, it is because five million are hired and 4.8 million are separated, not because there were 200,000 hires and no job losses.
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The third fact puts this in perspective. In a healthy labor market like the one that prevailed in 2006 and early 2007, American firms hire about 5.5 million workers per month.
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One final fact is worth noting. Healthy labor markets are characterized not only by high levels of hiring, but also by high levels of separations.
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Allowing maximum flexibility encourages fluidity and means that employers are willing to hire workers who lose their jobs elsewhere.
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The prescription for the American labor market is simple: low taxes on capital investment, avoidance of excessively burdensome regulation, and open markets here and abroad. We must create a climate in which investment is profitable, productivity is rising, and employers find it profitable to increase their hiring rate. These are the mantras that economists have chanted in the past. But they are our best bet for ensuring a dynamic and growing labor market.

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