BusinessGeneralNewsAn ugly truth hides in America’s record job growth

Mid-level jobs, wages remains are the backbones of high employment rates. 100 months of job creation in USA encouraged employers to scarmble finding workers besides dragging the long-term unemployed back into the market. However, some parts of the US economy failed to reflect the obtimistic image of the continuous job growth and low unemployment rate. According to Mark Hamrick “senior economic analyst at Bankrate.com“the unemployment rate was at or below 4% since last February is...
world2day2 weeks ago705 min

Mid-level jobs, wages remains are the backbones of high employment rates.

100 months of job creation in USA encouraged employers to scarmble finding workers besides dragging the long-term unemployed back into the market.

However, some parts of the US economy failed to reflect the obtimistic image of the continuous job growth and low unemployment rate.

According to Mark Hamrick “senior economic analyst at Bankrate.com“the unemployment rate was at or below 4% since last February is obviously historically remarkable but the composition of the workforce or employment obviously paints a much more complicated story”.

Analysts like Hamrick, besides the central bankers at the Federal Reserve all agree that the US economy is now dominated by high skill, high wage jobs and low skill, low wage jobs.

Middle skill, middle wage jobs vanished led to the economic divisiveness of our country in addition to some degree the political divisiveness”.

Thanks to globalization and automation, 25% of jobs have disappeared over the last two decades in manufacturing.

The only thing that remains the same for large part of those 100 months were the wages. wages were up 3.2% in December from a year earlier,

According to the Economic Policy Institute (EPI)wages have to grow between 3.5% to 4% for average workers to feel impact. The wage growth figures should come with “a sad trombone sound effect” particularly in the early part of the recovery.

62% of employees didn’t received any increase in salary in 2018. Just 25% were determined to look for a better job this year.

“A little bit of what happened is that in the recession, employers got a lot more bargaining power and strength because workers really needed to try to have whatever job that they could get and some of that’s left over, employers think they should be able to get whoever they want at those lower wages. And I think that that will turn around, but it’s surprising that it hasn’t yet given the unemployment rate that we’re at today”according to Elise Gould, senior economist at EPI.

the unemployment rate does not count people working part time but full-time jobs or those long-term unemployed who have stopped looking but only those available to work.

“You see them coming back into the labor market every month, the one series that is under-appreciated is the share of newly employed workers who said they were not actively searching for work in the previous month. That is at a historic high. You have more than seven in 10 newly employed workers this month that were not actually looking for a job last month” said Gould.

 

 

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