Posted on 11/17/2015 6:44:27 AM PST by SeekAndFind
Employment rates among prime-age workers, especially men, have declined sharply over the last few decades. The Great Recession made matters worse. Recent declines in the unemployment rate have enticed some back into the active labor force but the long-term picture is still discouraging. When we compare the U.S. to other advanced countries, working-age adults are simply not working as much as adults in most European nations.
What's going on here? As my colleague Gary Burtless notes, three developments have probably played a role. First, real wages have fallen by 28 percent for high-school educated men since 1980, making work much less attractive, but also signaling that employers are looking for a higher level of skill. Second, the disability rolls have been growing (primarily because of musculoskeletal and mental health issues). Although getting onto disability is a long and involved process, the benefits compete favorably with what a low-skilled worker could earn and create a disincentive to re-enter the labor market. Third, now that women are almost half the labor force, the pressure for men to work has lessened.
In the shorter run, it's hard to tell how much of the recent sharp drop in employment is related to weak demand and how much to these longer-term factors. Of course, the two are related. A further tightening of the labor market would relax employer hiring requirements and provide more opportunities and on-the-job experience for those with the fewest skills. But a rather large group may simply be unemployable at an attractive wage and may have figured out how to get by without working very much.
Here is what we know based on data from the 2014 annual survey of households in the U.S. (with income data for 2013).
(Excerpt) Read more at realclearmarkets.com ...
My buddy is a journeyman electrician who keeps his license up. He is nearly eligible for social security.
He got a call from a guy two states away yesterday morning trying to hire him. They guy said he can’t find people who; can pass a drug test, can’t pass background checks, will stay on the job, are reliable, are skilled, are licensed etc. The guy fairly begged my friend to take a job.
I went to a workshop last week. Several 20 to 40 somethings in the group. Many have one foot firmly planted in childhood and playing and the other lightly planted in acting like they have a job to do.
Yesterday driving behind a glass company vehicle I noticed they had a sign “Glazers Wanted.”
Since everyone who can read at a 5th grade level thinks they are college material, finding workmen with skills is difficult.
We had a similar problem in our small construction co. Virtually every young man I tried to hirethought he should be president of MS and was going to jr. college instead of trade school.
> First, real wages have fallen by 28 percent for high-school educated men since 1980
Ding, ding, ding! Pay less, get fewer workers. This is why there is such a large push for “immigration reform” - business wants indentured servants.
It is no mystery at all! Ms. Sawhill sounds like a freaking academic without a single clue or she is pimping for some grant money.
The answer? I am told directly and by others who have tried to hire that the threshold rate for a head of household on welfare of some sort(s) is around $25 an hour to even get out of the house. They don’t need the money badly enough. What is more, government support is a great subsidy for a self-employed cash business. Many of them in our area will work small jobs or mechanic for cash only. They don’t have to work much to make a good showing because their basic needs for food, clothing, shelter and health care are paid by US who work and pay taxes.
Here is another money line:
“Among male heads of household between the ages of 25-54, 27 percent say it is because they are ill or disabled.”
You gotta be freaking kidding me, 27% are ill or disabled? One out of four working age heads of household you see out and about are ill or disabled and on social security support? Remember, she excluded people on short term non-government disability insurance.
Eployment rates have fallen as the welfare rolls have increased.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.