Wednesday, April 9, 2014
The job market is still tough
http://money.cnn.com/2014/03/31/news/economy/janet-yellen-raise/index.html?iid=SF_E_River
The central bank hopes help "Main street" not just "Wall street" by boosting job market firstly. "In some ways, the job market is tougher now than in any recession." Said by Federal Reserve Chair Janet Yellen on Monday. She listed six signs to explain why does she think the job market is still weak. First of all, the average of 2% per year rising rate of wage is too slowly. Secondly, the Long-term unemployment is high. Thirdly, too many workers are doing part-time jobs rather than full-time jobs. Then employers didn't create a lot of new jobs and some people are leaving their position. Last but not least, the labor participation rate is still low.
All these signs shows that the job market is not good as we imagine although the economy is recovering. The government needs to offer more new jobs and increase labor participation rate, which can make unemployment rate fall and increase the output.
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I agree, the job market is still tough. I am not sure there are more high paying jobs that americans have lost, and somehow need. However, I do not think the government offering jobs helps in the long run. They did this through government projects during the great depression, but I am not sure this necessarily works, because at some point our government cannot support too many jobs. With the national debt the way it is, and our government budget problem, I am not sure they can add more jobs
ReplyDeleteThe job market is without a doubt still very tough. I do not believe that the government should straight up offer jobs to people at the moment. The best thing that the government can do to help lower unemployment would be to encourage education. Secondary and trade schools should be responsibly subsided, while student federal aid should be enough to enable people to obtain education who otherwise wouldn't be able to without aid. I believe that an increase in more high skilled workers will help decrease the unemployment rate in the long run.
ReplyDeleteI think a lot of companys does not want to increase their workers because of just cost.
ReplyDeleteThis phenomenon is caused by techonology, global economy and recession. The timing is too bad,because those factor attack hob market together.
The government should not be the one offering jobs though. They should allow for smaller businesses to grow and allow them to hire more people. They need to let the businesses that are not doing business the right way to fail or at least go through issues before they come in and have the government give them jobs just because the economy is not doing well.
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