This article by Patrick Gillespie tells us that even though the unemployment rate it's now 5.9%, does not necessary mean that the economy is becoming a lot better. The truth is that millions of people are still unemployed or underemployed. Now we have 54% more part-time workers than when the recession first started. There are three types of unemployed or underemployed workers: 1) People who want to work full time but can only find part-time jobs. 2) People who are discouraged to find jobs for weeks due to skills, age or no available work. 3) People who can't find work for months. Also, according to the article that long-term unemployment is becoming a bigger issue for women. 44% of long-term unemployed workers are women compare to 35% in 2007. Once government stops unemployment benefits, "Many people temporarily or permanently give up the search." Even though the job market will continue to improve, it may take a long time for these economic wounds to fully heal.
Discouraged worker was due to baby boomers retiring from the workforce. Over the next ten years, the workforce participation rate will still be low due to baby boomers. And lots of people cannot find full-time jobs is due to many companies would like to hire more part-time workers, so they don't need to pay benefits for long-time workers. Our economy is recovering even this is the weakest one in decades. However, unemployed workers should not be discouraged, as the economy is growing and finding a job would be around the corner.
I think the unemployment rate will remain an issue as long as the Baby Boomers are members of the labor force. There just aren’t enough jobs available to meet the number of jobs demanded with such a large population demographic. Also, I think the unemployment situation is more of an improvement for men than it is a discouraging statistic for women. If in 2007, 35% of the long-term unemployed workers were women, that means 65% were men. Now that 44% are women, 56% are men and we are seeing more of a gender balance, which is a positive.
ReplyDeleteThis once again shows one of many problem with using employment statistics only as a base measure. While many more Americans may be employed, if they are only working part time or making lower comparative wages, this doesn't really solve anything and contributes to the widening gap between classes.
ReplyDeleteI agree with Kevin that the baby boomers are a large problem to younger workers, and those who are unemployed. With life expectancy being so high, baby boomers are working well into their 60s and 70s instead of retiring in their 50s or 60s. This takes up a large number of jobs since their is such a huge number of baby boomers. I think we are getting close to many of them retiring, but this trend will continue with future generations from now on.
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