Posted on 06/01/2017 11:23:02 AM PDT by SeekAndFind
There's something weird going on with the US economy.
It's steadily adding new jobs, at a pace of about 185,000 every month. Unemployment keeps falling: at 4.4%, it's at its lowest since May, 2007. But people's wages aren't growing at the rate you'd expect them to when unemployment is this low and hiring is so healthy.
So what's happening? One explanation is there's a larger pool of people who are starting to look for work — people who weren't previously considered unemployed. If that's the case, companies don't need to boost wages to compete for workers, because there's more people out there who had given up even trying to find a job until recently — and now they're coming back into the workforce.
That scenario depends on what percentage of the adult population are "participating" in the labor market, either by working or looking for a job. The labor force participation rate has been in decline since 2000, thanks in large part to the aging US population. But it held steady in the last two years, and the unemployment rate fell to a historic low, suggesting plenty of people who were counted as being out of the labor force have been rejoining it as the economy improves, even as older people drop out entirely.
Why those people left the workforce, and why some are returning, has become a popular guessing game among economists trying to figure out one of great mysteries of today's economy.
Federal Reserve researchers argued in 2014 that "nearly half of the decline" in labor force participation was due to the the growing number of baby boomers hitting retirement age. But what about the other half?
(Excerpt) Read more at buzzfeed.com ...
New jobs might even be full-time and people are dumping part-time work where they can. One of the big problems with the Obamacare-economy was the move to part-time work.
“Because the unemployment numbers have been falsified for the last eight years.”
And then some.
Unemployment stats have been heavily ‘enhanced’ since the mid nineties.
http://www.shadowstats.com/
http://www.shadowstats.com/imgs/sgs-emp.gif?hl=ad&t=1493990927
“Took 30 posts for anyone to figure it out
MASS ILLEGAL AND LEGAL IMMIGRATION, GENIUSES
That’s why the bankster dominated ruling class wants it
They don’t PAY for labor anymore, it’s damn near free for them”
AMEN
Was any of that due to females entering the workforce during the latter stages of the post-war era?
That's been a concern of mine, too.
It seems that durable goods are just that - durable. I buy a computer and then don't need another one for years. Same with my smartphone, same with the TV, same with my stereo, car, washer/dryer, refrigerator, etc.
-PJ
I am a life long bookkeeper—mostly for small businesses.
AFTER years of dormant & declining job availability, a person who can now achieve a job should be somewhat grateful.
IF you are going from NO JOB to a job-—kieep your mouth shut about ‘NOT GETTING PAID ENOUGH”.
YOU took the job at the advertised price. IF you don’t like your wages-—QUIT & see IF anyone else will pay you what YOU think YOU are worth.
How about another idea? I once applied for a bookkeeper job. Close to home & full time. Perfect-—except the owner did NOT want to pay me what I was asking. My hourly rate was exactly what I had been making for some time.
I finally said: “Tell you what: I will work for you for 1 full week. IF you don’t think I can do this job-—you DO NOT owe me a penny. HOWEVER-—IF you want to keep me, I get to start at MY rate & I get a review for an increase in 60 days.””
After 3 days, I got the job at MY rate & I got 2 raises in that 60 days.
Sometimes you have to believe enough in yourself to prove it to others.
The unemployment rate stat is BS. The labor participation rate is a greater gauge of the job market.
A growing job sector should initially see an increase in the unemployment rate as people who previously were not counted in the unemployment statistic, because they gave up looking, begin to look for jobs again.
The unemployment rate stat is BS. The labor participation rate is a greater gauge of the job market.
A growing job sector should initially see an increase in the unemployment rate as people who previously were not counted in the unemployment statistic, because they gave up looking, begin to look for jobs again.
Apples & oranges? Were those counts like todays, in which those who are discouraged and no longer on the collect-a-check rolls don’t exist? Were the retired and disabled counted?
And lastly, is the source of those figures a believable one?
Legal and illegal immigrants are depressing wages because they grow the working age population faster than jobs are being created.
Unemployment is low because job creation isn’t keeping pace with the number of workers
Based on his article, unemployment calculations and the reasons for them must look like magic to him.
Wages are not going rise with the multitude of foreigners working in US both with and without work visas. Then add in 17cents an hr in China jobs and you get what we have, lots of people with no option but crappy low paying no benefits jobs.
I can think of a few reasons:
* The new jobs are entry-level and don’t pay well
* The new jobs are service jobs and do not pay as well as manufacturing or construction
* Unemployment isn’t as low as it is being reported
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Also two more reasons:
Extremely high taxes; largest tax increase in history after downturn of 2008 (Obamacare)
Extremely high level of debt and continued deficit spending
If Trumps gets rid of the H1b and other work visas....wages will shoot up.
Wouldn’t touch the way the statistics are manufactured until that zero crossing begins to loom large and obviously fake. Allow those responsible for that farce begin to squirm. Don’t allow them to move any of the goalposts.
Youth is wasted on the young.
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