Productivity, Inventory Recessions, and Recalculations

lThe real change in the relationship between employment and productivity is the information age, we search wider and longer. So the search spiral that Brad shows here becomes wider and wider.

Chart stolen from Brad in his post here.

With the internet we all look over the whole economy.  So hiring happens on the internet and obtains better matches, hence productivity grows but matches happen less frequently.   If growth happens sooner, then many more employers would be less precise and start accepting the currently available and matches would happen faster.

If we want faster matches we have to figure out what constrains us.