2/14/2005

What is happening to employment?

In an article by CNN news called Job Growth…is this it? really got me thinking about where America is headed. I really find a lot of what the article had to present to be an eye opener. The article stated, “The economy created nearly 2.2 million jobs last year, an improvement from the 2002-2003 period, when there was a net loss of jobs. But that's still well below the average of any recovery that's lasted this long since World War II.” I think, that the reason why America is having problems creating the jobs needed is because of the constraints on employment. For example, the article also stated, “…factors hurting job growth in the current expansion: companies facing stiff competition from overseas, especially from China and Latin America; productivity growing at better than double the historical average; jobs moving overseas in services and not just in manufacturing; the growing use of temp workers; and the nation's shrinking manufacturing base…” These constraints make it hard to create job productivity in the United States. The United States cost of living is greater, so if employers lower the wages available for workers in the United States the living conditions in the United States will be lower. I know that these constraints on employment are going to really change the economy in the United States. This country can’t maintain employment with competition as fierce as it is.http://money.cnn.com/2005/02/14/news/economy/jobs_outlook/index.htm

4 comments:

Mack said...

I think that America will continue to have emplayment grow. We do send jobs overseas if we can make more money doing it but we also bring in business from other countries. I don't think that competition from China and Latin America hurt our job growth they just change it into different growth, like cutting back some parts of a tree to make the others grow more. If we want to keep those jobs from going to other countries we should change some of our social policies like minimum wage and Unemployment.

kenny said...

I agree with Mack’s comment. I would take it a bit further, I think the problem is with food stamps, government subsidized housing, Medicare, Medicaid, WIC, government grants and strict Environmental regulations. Basically in America people who work have to get paid enough for themselves and for the people not working.

Dr. Tufte said...

-1 on Marie's post for a poorly formatted link, and on Mack's comment for spelling errors.

I think Marie's post is correct throughout.

The only thing I would add is that there are some unusual data measurement problems associated with the last recession - so not everyone is convinced that employment recovery was actually weak.

C-Dizzle said...

I think that this slow-down in job creation isn't necessarily a bad thing. As I've mentioned before in some of my other posts, what's good for the long run isn't always good for the short-run. Companies are becoming more global and more jobs may be spreading out around the world; slowing job growth temporarily in the U.S. This spread-out of jobs will create global competition, creating more efficient organizations and lower costing goods. Eventually, job growth will slow in developing nations and the world economy should come back to equilibrium with new jobs and plenty of growth in the U.S.