Recent
data released by the government revealed that about a half-million people, most
of them without a college degree joined the labor force in March. This was the
3rd consecutive month that the workforce has increased and the
largest expansion since 2010. This growth represents some hope for
less-educated workers, who were the ones to take the hardest hit during the
recession.
The
economy added 192,000 jobs in March after hiring slumped during winter’s harsh
conditions. Although more people found work, the ballooning labor force meant
that the national unemployment rate remained unchanged at 6.7 percent. The labor
force participation rate, the percentage of the population that either has a
job or is looking for one dropped to the lowest level in 35 years. As a result,
the unemployment rate fell more quickly than expected. No one is sure what was
driving the decline. Some believe the answer is demographics: Baby boomers are
retiring, and fewer people are immigrating to the United States. But others
have a different explanation. They argue that many potential workers became so
discouraged that they gave up the job search and were no longer counted as part
of the labor force. That means that a stronger economy could entice them back
into the mix.
The
Obama administration used the jobs report to highlight the plight of the
long-term unemployed, who account for more than one-third of people out of
work. The Senate is expected to vote on a measure that would restore
unemployment benefits to those workers. Federal payments to those who have been
unemployed six months or more expired in December, and Democrats have been
seeking a way to reinstate them. Perhaps even more heartening, the nation’s
workforce grew by half a million people in March. The expansion in the labor
force meant that the unemployment rate remained unchanged at 6.7 percent in
March, even though more people found jobs.
I agree that the extremely low labor force participation rate is largely due to the increasing amount of discouraged workers, especially those who have not received jobs after receiving degrees in higher education. These discouraged workers should look at these recent results and be encouraged by those who do not have higher education and are finding employment. Increasing employment, no matter how "desirable" the job may be to the intellectual, overall will have positive effects on our economy, which will boost morale and provide the security firms need to open better employment opportunities that will be more attractive to our youth.
ReplyDeleteThe President would be able to keep job growth increasing like this by keeping the minimum wage sticky, and not increasing it to over $10. Companies will not be able to afford minimum-wage employees and will have to fire some, increasing unemployment. As well as this, they would have to raise prices on their products if they ever want to keep the same number of employees instead of turnover occurring, which would cause inflation in the economy. The minimum wage isn't enough to live the American dream on, but that's what we're going to college for.
ReplyDeleteI agree with Joey. However as we have seen in class, it is becoming less and less important to go to college due to the high number of people with college degrees now a days. You may save yourself if you decide to not go to college and get a job right out of high school instead. You will not have the huge debt or worry about finding a job in your field like the majority of kids coming out of college now a days.
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