Americans are increasingly foregoing paychecks due to disability, school or retirement
by Kasia Klimasinska
How come more people are retiring in their early 20s? Why are middle-age men becoming stay-at-home dads? What’s keeping women out of the workforce other than illness, kids or school?
Those are some of the questions raised in a new Bureau of Labor Statistics report that shows changes over the past decade in why people stay out of the labor force. Finding answers is key for the Federal Reserve as it maps the contours of a job market that’s becoming harder to predict with the aging of the baby boomers and shifting household priorities.
Here’s what the bureau found, broadly: Thirty-five percent of the U.S. population wasn’t in the labor force in 2014, up from 31.3 percent a decade earlier. (You’re considered out of the workforce if you don’t have a job and aren’t looking for one. That’s distinct from the official unemployment rate, which tracks those out of work who are actively job hunting.)
Drilling down into the numbers reveals more about the shifts in the reasons some people forego a paycheck. In all age groups, for instance, more people cited retirement as the reason for being out of the labor force, and it wasn’t just older people. Continue reading
by Stephen Moore • NY Sun
What ever happened to the old-fashioned American work ethic? I ask this because Thursday’s Labor Department report for June found yet another 430,000 Americans of working age (16+) dropped out of the workforce.
Over the last year more only 1.3 million of Americans of working age have entered the workforce even as the population of this same demographic increased by more than 2.8 million. Just over 1 million of this group found jobs. That’s right—of the increase in working age population, less than 36 percent found employment! Continue reading
by Jeff Cox • CNBC
The revelation, contained in a new survey Wednesday showing how much work needs to be done yet in the U.S. labor market, comes as the labor force participation rate remains mired near 37-year lows.
A tight jobs market, the skills gap between what employers want and what prospective employees have to offer, and a benefits program that, while curtailed from its recession level, still remains obliging have combined to keep workers on the sidelines, according to a Harris poll of 1,553 working-age Americans conducted for Express Employment Professionals. Continue reading
by the Oklahoman Editorial Board
Thus it was no surprise that he parroted a Reagan trope in recently asking the question of whether Americans are better off today than when he took office — and then answering his own question by concluding that “the country is definitely better off than we were when I came into office.”
For Reagan, it was a campaign strategy drawn as a weapon against Jimmy Carter in 1980. Are you better off, he asked voters, than you were four years ago?
Such comparisons aren’t unique to Reagan and Obama, of course, but Reagan put his own stamp on it — quite successfully as it turns out.
“By every economic measure,” Obama told college students the other day, “we are better off than when I took office.” So not only has this president adopted the Reagan line (even crediting Reagan). He’s turned it into yet another example of repeated, robotic rhetoric in the endless campaign speeches made by a man “who is not running for anything except the exit,” in the words of Caroline Baum, a former Bloomberg News columnist. Continue reading
The number of people collecting paychecks rose more than had been expected and the tally of people counted as jobless fell, placing the unemployment rate — 5.9% — at its lowest level since 2008.
While the trends are positive, they offer only distant hope to a middle class that is taking home less pay than it used to and can only watch as the wealthy enjoy ever greater prosperity.
It wasn’t supposed to be this way under President Obama, tribune of ordinary folks who, as he likes to say, play by the rules. Continue reading
Three new Fed surveys highlight damage to the labor market.
Most of the political class seems to have decided that ObamaCare is working well enough, the opposition is fading, and the subsidies and regulation are settling in as the latest wing of the entitlement state. This flight from reality can’t last forever, especially as the evidence continues to pile up that the law is harming the labor market.
On Thursday the Federal Reserve Bank of Philadelphia reported the results of a special business survey on the Affordable Care Act and its influence on employment, compensation and benefits. Liberals claim ObamaCare is of little consequence to jobs, but the Philly Fed went to the source and asked employers qualitative questions about how they are responding in practice. Continue reading
by Peter Morici • FoxNews
The U.S. economy created only 142,000 jobs in August, down from 212,000 in July, indicating the economy significantly slowed this summer.
Job creation is well below the pace needed to reemploy all the workers displaced during the financial crisis—the economy is in crisis!
Although official GDP estimates indicate the economy expanded in the second quarter at a torrid pace—4.2. percent—much of that was inventory build, as consumer spending continued to drag along at a nonplus pace and capital investment, especially in manufacturing, remains subpar.
The official jobless rate is down to 6.1 percent but real unemployment is closer to 18 percent, because so many prime aged adults are sitting out the party.
by Kerri Toloczko • Investor’s Business Daily
In a fit of political pique and campaign considerations, President Obama’s Department of Education is proposing higher education regulations that would deny access to degree programs to nontraditional, low-income and minority students attending for-profit colleges and universities during a time of job scarcity.
The administration has been swinging a sword at this sector since Obama took office, striking through “Gainful Employment” regulations restricting federal student loans based on arbitrary post-graduation employment rates only at private-sector institutions. In 2010, the department proposed similar severe funding restrictions for students attending career colleges and technical schools such as Strayer University, ITT Tech, Kaplan College and University of Phoenix. Continue reading
Public policy intended to make layoffs less painful actually made layoffs cheaper and more common.
Why has the labor market contracted so much and why does it remain depressed? Major subsidies and regulations intended to help the poor and unemployed were changed in more than a dozen ways—and although these policies were advertised as employment-expanding, the fact is that they reduced incentives for people to work and for businesses to hire.
You probably heard about the emergency-assistance program for the long-term unemployed that ended only a few months ago after running for almost six years. But there is also the food-stamp program. It got a new name and replaced the stamps with debit cards. Participants are no longer required to seek work and are not asked to demonstrate that they have no wealth. Essentially, any unmarried person can get food stamps while out of work and can stay on the program indefinitely. Continue reading
Ask voters what their top priority is, and the most frequent answer is “the economy,” although that’s a catch-all term for a wide variety of concerns and sub-issues. That March Gallup poll found 59 percent personally worry about “the economy” a great deal; 58 percent said they worry about “federal spending and the deficit,” 57 percent “the availability and affordability of health care,” 49 percent “unemployment,” and 48 percent “the size and power of the federal government.”
Rarely will you find a political environment as golden for a Republican policy agenda as this one. Continue reading
Words seem to carry far more weight than facts among those liberals who argue as if rent control laws actually control rents and gun control laws actually control guns.
It does no good to point out to them that the two American cities where rent control laws have existed longest and strongest — New York and San Francisco — are also the two cities with the highest average rents.
Nor does it make a dent on them when you point out evidence, from both sides of the Atlantic, that tightening gun control laws does not reduce gun crimes, including murder. It is not uncommon for gun crimes to rise when gun control laws are tightened. Apparently armed criminals prefer unarmed victims. Continue reading
Don’t believe the happy talk coming out of the White House, Federal Reserve and Treasury Department when it comes to the real unemployment rate and the true “Misery Index.” Because, according to an influential Wall Street advisor, the figures are a fraud.
In a memo to clients provided to Secrets, David John Marotta calculates the actual unemployment rate of those not working at a sky-high 37.2 percent, not the 6.7 percent advertised by the Fed, and the Misery Index at over 14, not the 8 claimed by the government.
Marotta, who recently advised those worried about an imploding economy to get a gun, said that the government isn’t being honest in how it calculates those out of the workforce or inflation, the two numbers used to get the Misery Index figure.
“The unemployment rate only describes people who are currently working or looking for work,” he said. That leaves out a ton more. Continue reading
One blessing of the holiday season is upon us: The prospect that members of Congress will actually stay away from Washington for a few weeks, leaving what’s left of our liberties and livelihoods alone until the new year.
Glory, hallelujah, amen.
Of course, lawmakers will be back at it soon. And we’re already seeing signs that they have no idea how to address the serious problems average, struggling Americans face every day. Continue reading
With Democrats cratering in the polls over their collapsing health care law, they are trying to pivot to the only part of their policy agenda that still enjoys broad public support: the minimum wage. But their advocacy and its popularity rest on the incorrect belief that a significant number of families live on the minimum wage. Instead, the primary impact would be to exacerbate a crisis of youth unemployment spurred largely by the last minimum wage increase.
A recent analysis by Ben Gitis of the American Action Forum found that just 1.9 percent of all wage and salary earners make the minimum wage or less. Just 0.3 percent of people in families with incomes below the poverty line make the minimum wage or less — and just 1.5 percent make less than $10.10, the level that Democrats have suggested for the next hike. Applying the most recent academic research, Gitis also found that such an increase would reduce employment by more than two million jobs. Continue reading
Let me be the first to ask: Did the White House know that employment reports were being falsified?
Last week I reported exclusively that someone at the Census Bureau’s Philadelphia region had been screwing around with employment data. And that person, after he was caught in 2010, claimed he was told to do so by a supervisor two levels up the chain of command.
On top of that, a reliable source whom I haven’t identified said the falsification of employment data by Census was widespread and ongoing, especially around the time of the 2012 election. Continue reading