Unemployment and the Labor Markets
88,000 jobs created in the U.S. and the unemployment rate drops to 7.6%, was the headline on the jobs front yesterday. Also in the report, labor market participation has dropped to 63.3%. It seems clear that there are people that have dropped out of the labor market and that possibly the growth in labor market participation has stopped and there may be a new "normal" statistically.
One factor in the growth of labor market participation has been women joining the workforce in numbers that are similar to men. Two income families are not exceptional these days. This has not always been the case. It also seems that younger workers between the ages of 16-24 are entering the labor market at an older age and are more likely to stop looking for work when unemployment rates are high. Older workers above 55 may continue to work later in life because they can, must, or because of social connections.
The reporting regarding labor market participation has some value laden judgements in my opinion. I think some folks feel that if you have stopped looking for work, you are a slacker. It's more complicated I'm afraid. Younger workers don't have as many opportunities to enter the labor market with a high unemployment rate. Fast food restaurants and grocery stores are likely to be staffed by those 55 and older groups even as baggers and cashiers. I understand the idea of being an entrepreneur but that requires capital that may not exist. Learning new skills to compete for jobs sounds good, but paying for school and living expenses while studying and accumulating debt is a cross current. I still thing higher education is good, but I think credentialing and branding is inflating the cost of things and limiting access to training and slowing job growth.
Keeping up with the Kardashians may employ TV production folks, and sell some ad time but what does it teach people?
One factor in the growth of labor market participation has been women joining the workforce in numbers that are similar to men. Two income families are not exceptional these days. This has not always been the case. It also seems that younger workers between the ages of 16-24 are entering the labor market at an older age and are more likely to stop looking for work when unemployment rates are high. Older workers above 55 may continue to work later in life because they can, must, or because of social connections.
The reporting regarding labor market participation has some value laden judgements in my opinion. I think some folks feel that if you have stopped looking for work, you are a slacker. It's more complicated I'm afraid. Younger workers don't have as many opportunities to enter the labor market with a high unemployment rate. Fast food restaurants and grocery stores are likely to be staffed by those 55 and older groups even as baggers and cashiers. I understand the idea of being an entrepreneur but that requires capital that may not exist. Learning new skills to compete for jobs sounds good, but paying for school and living expenses while studying and accumulating debt is a cross current. I still thing higher education is good, but I think credentialing and branding is inflating the cost of things and limiting access to training and slowing job growth.
Keeping up with the Kardashians may employ TV production folks, and sell some ad time but what does it teach people?
Comments
Post a Comment