U.S. economy added 155,000 jobs in December; unemployment rate unchanged
January 4, 2013 at 1:59 am in Duluth News Tribune
U.S. employers added 155,000 jobs in December, a steady gain that shows hiring held up during tense fiscal cliff negotiations in Washington. Continue Reading
I believe it has been estimated by a number of economists, at this time between 26 and 30 million people in this country arecurrently looking for a full-time job. Many of these folks are not on the “official” unemployment tally fo a number of reasons. It is also estimated some 7-8 million jobs have permanently disappeared from the US economy.
Also, under past guidelines, a growth rate of around 150,000 jobs per month was necessary just to keep up with new entrants into the job market. Some economists now say the actual business need for that many jobs may be smaller due to what they call “permanent changes” in the US economic situation. However, it doesn’t change the fact, the higher number of actual “needed” jobs just for people trying to enter the work force may still be appropriate.
150,000 new entrants (college grads, immigrants, etc.) into the job market each month translates into an annual need for around 1.8 million jobs. Some of the opportunities/openings will come from attrition in the current market, including retirement, death, illnesses, firings, new startups and the like. However, this level of new entrants, combined with with the total currently looking for full time work, translates into an estimated minimum 5 workers competing for every full-time job which becomes available.
Combine the competition for jobs with the fact the average worker’s income, in real terms has been dropping for years (the average college graduate starting salary has dropped by more than 7% in just the past few years), and the earnings outlook for many job seekers becomes rather bleak.
Even for people with jobs, the median, half the families make less and half make more, “family” (two wage earners) income in the US is somewhere around $50,000 per Around 95% of family income in the US is less than $154,000 per year.
Add the level of education debt now being carried by income and job enthusiastic college kids and their families, the usurious interest rates charged on a lot of credit card balances, and the plethora of fees levied by banks, pay-day loan operators and other lending outlets, and one wonders if we are not indeed headed to becoming a “company store” nation. How can the average person or family afford to buy a car, buy a home, afford kids, save for college, obtain reasonably-priced healthcare, save for retirement and perhaps pay for long term care insurance? Much less, think about activities for family and personal enjoyment like vacations, hobbies, and other interests?
Now add to all this the national debt being foisted upon the shoulders of all of us and our children, including wasteful spending, fraud, bailouts/supports for the banks and other vested corporate and individual interests, and downright corruption in countries our foreign aid is going to…and the situation gets bleaker.
And where are the pleas for cuts by too many? in the social services safety net programs, and in medicare and social security, where, yes, fraud and waste are entrenched, but far less than other areas of government operations.
So, to the politicians on both sides of the aisle, don’t tell me things are getting better when 150,000 jobs/month get added to our economy.
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Sorry…when the original posted, a couple of words dropped. So, here is the corrected version:
I believe it has been estimated by a number of economists, at this time between 26 and 30 million people in this country are currently looking for a full-time job. Many of these folks are not on the “official” unemployment tally fo a number of reasons. It is also estimated some 7-8 million jobs have permanently disappeared from the US economy.
Also, under past guidelines, a growth rate of around 150,000 jobs per month was necessary just to keep up with new entrants into the job market. Some economists now say the actual business need for that many jobs may be smaller due to what they call “permanent changes” in the US economic situation. However, it doesn’t change the fact, the higher number of actual “needed” jobs just for people trying to enter the work force may still be appropriate.
150,000 new entrants (college grads, immigrants, etc.) into the job market each month translates into an annual need for around 1.8 million jobs. Some of the opportunities/openings will come from attrition in the current market, including retirement, death, illnesses, firings, new startups and the like. However, this level of new entrants, combined with with the total currently looking for full time work, translates into an estimated minimum 5 workers competing for every full-time job which becomes available.
Combine the competition for jobs with the fact the average worker’s income, in real terms has been dropping for years (the average college graduate starting salary has dropped by more than 7% in just the past few years), and the earnings outlook for many job seekers becomes rather bleak.
Even for people with jobs, the median, half the families make less and half make more, “family” (two wage earners) income in the US is somewhere around $50,000 per Around 95% of family income in the US is less than $154,000 per year.
Add the level of education debt now being carried by income and job enthusiastic college kids and their families, the usurious interest rates charged on a lot of credit card balances, and the plethora of fees levied by banks, pay-day loan operators and other lending outlets, and one wonders if we are not indeed headed to becoming a “company store” nation. How can the average person or family afford to buy a car, buy a home, afford kids, save for college, obtain reasonably-priced healthcare, save for retirement and perhaps pay for long term care insurance? Much less, think about activities for family and personal enjoyment like vacations, hobbies, and other interests?
Now add to all this the national debt being foisted upon the shoulders of all of us and our children, including wasteful spending, fraud, bailouts/supports for the banks and other vested corporate and individual interests, and downright corruption in countries our foreign aid is going to…and the situation gets bleaker.
And where are the pleas for cuts by too many? in the social services safety net programs, and in medicare and social security, where, yes, fraud and waste are entrenched, but far less than other areas of government operations.
So, to the politicians on both sides of the aisle, don’t tell me things are getting better when 150,000 jobs/month get added to our economy.
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I give up. Here is where the words were dropped. Hopefully it posts correctly this time. If not, you know what I mean…
Even for people with jobs, the median, half the families make less and half make more, “family” (two wage earners) income in the US is somewhere around $50,000 per year. Around 95% of family income in the US is less than $154,000 per year
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You’re responding to last week’s problem. For the next 18 or so years, 10,000 baby boomers will reach retirement age (65) EVERY DAY. The remaining workers are going to have to worry about being more productive as the workforce shrinks.
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I heard Alan Greenspan say just about the same thing you just did. A few years back he recommended opening the borders to more immigrants in a need to fill future jobs or we will be left without an adequate workforce. Now will this influx of new workers make it more difficult for our children to find jobs? I guess time will tell.
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