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Low levels of inflation, long periods of economic growth and low levels of employment volatility were viewed as unquestioned proof of success.
The high proportion of university employment in the area also significantly reduces employment volatility.
A recent paper by Kurz and Senses (2013) looks directly at the relationship between trade and employment volatility for the U.S. manufacturing sector.
We find that the increase in dismissal costs decreased accessions and separations for workers in small relative to large firms, especially in sectors with higher employment volatility, with a negligible impact on net employment.
In order to verify this idea, we study four cases with obvious employment volatility: two announced mass layoffs, and the remaining two experienced rapid developments with an employment surge.
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"This is relatively good news," he added, "given the steady stream of negative reports last week of plunging home sales, stock market volatility and employment conditions".
Moreover, the cyclical volatility of employment is much more pronounced in the relatively less-regulated labour markets of the United States and the United Kingdom than in continental Europe (such as France or Germany) (Bertola and Ichino 1995; OECD 2009; Elsby et al. 2009).
An energy portfolio comprised of America's vast untapped renewable energies -- solar, wind, cellulosic, biomass, other -- could provide needed employment, desired reprieve from volatility of foreign oil markets, and a shot in the economically recessing arm of the US.
A non-exhaustive overview of papers related to ours are, among others, Zanetti (2011), who finds in a related DSGE model that labor market institutions significantly affect the volatility of output, employment and job flows (negatively for employment protection, positively for unemployment benefits).
A number of analysts including Mr. Dawsey also said that the new policy would give investors a new reason to fixate on the government's monthly release of employment data, potentially increasing market volatility.
This is a story of the U.S. "exporting" its production volatility and its employment dynamics to other parts of the world.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com