Why was net employment growth in 2009 negative?
A) Job creation exceeded job destruction that year.
B) The economy had previously been in a recession but was now in recovery
C) Job destruction exceeded job creation that year.
D) Employees were in the process of moving from failing to growing firms.

Question

Quizplus · Accepted Answer

Net employment growth is the difference between job creation and job destruction. If job destruction exceeds job creation, net employment growth will be negative. This was likely the case in 2009 due to the global financial crisis and recession that resulted in many companies downsizing or going out of business.

Why Was Net Employment Growth in 2009 Negative