ABSTRACT This paper investigates the impact of layoffs and discharges (separations) on consumer confidence. Empirical tests are used to measure any relationship between separations and two popular consumer confidence indexes. The paper found separations can be used to predict consumer confidence three months from now. INTRODUCTION This paper will empirically investigate the impact on consumer confidence by separations during the period between December 2000 and August 2005. The hypothesis is that there will be a positive and …showed first 75 words of 3237 total…

…showed last 75 words of 3237 total…labor force <Tab/>participation. Working Papers Series WP-02-12, Federal <Tab/>Reserve Bank of Chicago. <Tab/>Retreived September 22, 2005, from <Tab/>http://www.chicagofed.org/publications/workingpapers/papers/wp2002-12.pdf Zaretsky, A. M. (1992). How well does unemployment explain the low levels of consumer <Tab/>confidence? Federal Reserve Bank of St. Louis, Pieces of Eight, March, 1