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admin September 13, 2018 92 Views 112 Comments
Hello my friends ,
I am here to talk to you about Jobs and work and how the american economy has changed .
• There are 6.7 million job openings and just 6.4 million available workers to fill them, according to the Bureau of Labor Statistics.
• April marked the second month in a row that there were more vacancies than available hires, a phenomenon that had not happened before 2018.
• Despite the mismatch, sizeable wage gains remain elusive, with average hourly earnings up just 2.7 percent over the past year.
• The number of vacancies is pulling well ahead of the number the Bureau of Labor Statistics counts as unemployed.
• This year is the FIRST time the level of the unemployed exceeded the jobs available since the BLS started tracking JOLTS numbers in 2000.
Reasons why The job market is the way it is!
• Under normal circumstances, the mismatch would be creating a demand for higher wages.
• However, average hourly earnings rose just 2.7 percent annualized in May, up one-tenth of a point from April.
• People just dont feel like they are appreciated enough at work and believe they work way hard for the money they make , which to most people dont seem worth it !
• Others feel like the work conditions are just unfiar
• Some jobs dont offer full time and people get stuck working 2 different jobs and still barely making ends meets.
• People realize they have more options now more than ever so staying around when individuals arent happy , Isnt very likely anymore!
• Employers have been complaining for years about a skills mismatch, or the inability to find workers with the right training for the positions available.
• In the meantime, companies are adding other incentives to retain workers and pull new ones in.
As the demand grows, workers have gotten more confident about leaving their current positions for better ones.
This is the ongoing difficulty of employers finding qualified workers.
The disparity between job openings and hiring is over a million again for the second month in a row…..
The total of those counted as not in the labor force is now at a record 95.9 million, a 21 percent rise over the past decade.
And it may get worse !!!
Now …..The government and media have been reporting that the job market is remarkably tight.
The unemployment rate is at 3.8%—a historic low. Economists contend that 5% unemployment is deemed full employment.
This means that pretty much anyone who wants a job already has a job or could easily attain a job.
The rationale is that it is anticipated that there will always be a given number of people out of work not because the job market is soft, but rather due to miscellaneous reasons that leave a number of the population without a job.
There is always going to be a certain number of people between jobs, but that does not fundamentally reflect the soundness and strength of the job market.
Since we are at 3.8% which is lower than 5% (I’m pretty good at this math stuff), we should be celebrating. Sadly, I don’t believe the hype one bit. And Neither should you !!
HERE’S WHAT I THINK SHOULD HAPPEN !
• Wages of current workers should rise, as there is pressure to keep employees from being poached by rival corporations due to the shortage of workers. It’s “Economics 101” . If qualified employees are scarce and in short supply, the cost (i.e. salary) should rise. But employee wages are stagnant and not increasing.
• Companies should be offering a premium to recruit workers since they are in short supply, but they’re not. Most firms are not offering attractively high offers to job seekers. This doesn’t make sense if there is full employment and a shortage of talent. If the job market was so tight, companies would be forced to offer higher starting salaries to people to entice them to join their company. However, this isn’t happening, so why would current candidates leave their current position for a new firm?
• If there is truly a shortage of candidates, companies would have to lower their standards and hire people without all the requisite qualifications. Because of this, they would offer the incoming candidates training to help them learn the job. However, this is not the case. In fact, if you look at job descriptions lately, the requirements listed are ridiculously long and the compensation is far less than the job calls for.
What I think is happening is that people are working, but we are not given the full truth.
• Millions of millennials are working at McJobs jobs that are debasing and unfit for their $200k education. Yes, they may be working, but it is not the type of job they want nor does it measure up to their educational investment.
• Millions of people have dropped out of the job market and are not counted in the government data. If you stopped collecting unemployment checks, you simply disappear, the government doesn’t include you in their data. Therefore, even though you are looking for a job, you are unaccounted for. These unemployed folks have conveniently fallen through the cracks.
• Similarly, millions of people have simply given up hope. As a result of age discrimination and other perceived injustices, distressed job seekers throw up their hands in defeat and abandon their job searches entirely. Maybe they’ll settle for some part-time work or try to live off of their savings. Unfortunately, the outcome looks bleak for these folks.
• We have witnessed the ascendance of the “gig” economy (a side hustle) or whatever sexy-sounding title you want to assign it. People are pushed into working short-term, going-nowhere contractual engagements. It is scrapping and clawing to constantly find consistent work.
• Also, the data doesn’t count a person who is working and just holding on by the skin of one’s teeth. They come to work each and every day worried about losing their jobs, having to relocate to a cheaper location or another country, being replaced by someone younger and less expensive or superseded by artificial intelligence.
• Baby boomers ( mostly single mothers ) are desperately clinging onto whatever jobs they have. Without corporate pensions and having lost money in the financial crisis to reinvest into the bull stock market, they don’t have the money to retire.
Well I think that is all i have to say on the subject of matter at this point. Until next time friends , Understand life is not easy and neither is finding a job up to your standards ,but they are out there trust me !
Have a good day folks !