Posted on 01/19/2015 6:20:13 AM PST by SeekAndFind
The great wage mystery deepens. In economic recoveries, there usually comes a time when strong job gains lead to strong wage gains. Businesses must pay more to recruit and retain the workers they need. Not this time - or at least not yet. The unemployment rate has dropped from a peak of 10 percent in October 2009 to 5.6 percent at the end of 2014. But hourly wage gains haven't accelerated. They've plodded along at about a 2 percent annual rate, roughly matching inflation.
Economists are baffled. "This labor market recovery looks different from anything since World War II," says University of Chicago economist Steven Davis. Depending on the indicator, the job market appears either tight or loose. Low unemployment rates suggest tight, Davis says. So does the average time it takes firms to fill a vacancy; at nearly 25 days, it is just above levels before the Great Recession. But weak wage growth and the high share of jobless out of work for more than six months - a third of all unemployment - indicate a loose market.
(Excerpt) Read more at realclearmarkets.com ...
I visited a company Friday where some have been working 24/7 for 28 straight weeks. They are about worn out both physically and mentally
One business friend told me he was getting by on two energy drinks per day and feared withdrawal when the pace normalizes
Could it be that the declining unemployment numbers are bogus?
The error is a focus on “hourly wages”. Employers and the market place focus on total cost of an employee.
Add the hourly wage, plus cost of taxes the employer must pay on behalf of the employee, plus cost of health care and other benefits, plus regulations, plus regulations when you hire over 10 employees, over 50 employees, over 100 employees. Then consider the cost of training, supervision and other costs.
Where is the increased demand and increased price of the employers product or service to support the TOTAL COST OF A NEW EMPLOYEE?
Because unemployment only measures those looking for work. With so many now content on welfare, they are not looking anymore.
U.S. Payroll to Population Rate 44.3% in December
http://www.gallup.com/poll/180428/payroll-population-rate-december.aspx
Workforce participation among U.S. adults dipped slightly from 66.9% in November to 66.3% in December. Workforce participation measures the percentage of adults aged 18 and older who are working, or who are not working but are actively looking for work and are available for employment.
Workforce participation generally falls in the fourth quarter as retirements and layoffs are often pegged to the end of the year. The workforce participation rate has ranged narrowly between lows of 65.8% and highs of 68.5% since January 2010, but the 66.3% in December is among the lowest figures recorded in that time span. Workforce participation since mid-2013 has most often registered below 67%, whereas in prior years it was typically higher than that. This pattern reflects both a growing retiree population and declining participation among those still in their prime working years.
Because the recovery is a fantasy and the employment/unemployment numbers provided by the federal government are pure propaganda?
Obama has to browbeat states to raise the minimum wage to $15/hr. which makes up for the fact that millions of people who used to have $7.15/hr. full time jobs, have now been reduced to part time because of Obamacare.
In order for these unfortunates to make the same amount they used to make, you have to double the wage scale…BUT THEY STILL WILL BE MAKING THE SAME AMOUNT per day, which the government says is not enough.
This is like a dog chasing its tail and never catching it.
Uhhh, because the economy hasn’t recovered?
What recovery?
Because they are poorly educated economists who know nothing about economics. Hint there economists, you can scam the unemployment numbers but you can't scam the realities of the market place.
That's what I think. In fact, pretty much all of the economic data being released is suspect.
Geez, I thought the unemployment rate was a -2.7 percent.
Or whatever number they made up this week.
Is Robert Samuelson completely stupid?
He writes about economics for the Washington Post, and formerly for Newsweek.
Nuff said.
I read these articles and just shake my head. Almost 93 million people of working age are unemployed. Yet the unemployment rate is being reported as about 5.6% Whats wrong with that picture?
I remember when you could drive through any average neighborhood during the middle of a weekday and it would be deserted. Everyone was at work. Now you drive through it looks like Saturday on Wed.
Economic recoveries = No Obama
Almost 93 million people of working age are unemployed. Yet the unemployment rate is being reported as about 5.6%
And if we can make it 100 million Not Working, we will be at Full Employment.
It would not surprise me. LOL!
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