Take a look at this chart that investment website Motley Fool posted showing the rebound in corporate profits.

Aside from the stunning dip that marks the recession, this chart shows that corporate profits (not adjusted for inflation which has been low at any rate) are even higher than their last peak in 2006. Is this a sign that the economy is on the rebound? Not if you consider that employment nationwide is still hovering a little below 10% and is much worse in states like Michigan.

Why have profits rebounded ahead of jobs? The biggest reason is that corporations are still not hiring, so the remaining workforce is working harder, as factories build up inventories, and companies began to do more business. Bottom line productivity rises, but at the expense of employees who are doing more work for the same pay–or even at reduced pay because so many employers cut out cost of living increases or even reduced pay in the teeth of the Great Recession.

If corporate profits remain high, at some point the workforce will be maxed out or burned out, and hiring will pick up. Best case scenario the economy witnesses a healthy rebound. Worse case scenario, we get a “double ditch” recession as the recovery sputters, and more people get laid off, consumer spending drops, and the cycle begins all over again.