http://mobile.nytimes.com/2016/03/05/upshot/americans-are-joining-the-work-force-at-the-fastest-rate-in-16-years.html?_r=0
Tuesday, March 8, 2016
Job Creation
According to Irwin from the New York Times, the American work force, according to the Labor Department’s survey of households, rose by a whopping 555,000 people in February. Over the last three months, that number totals 1.52 million, the highest it has been in 16 years. The article states that this is a good sign, since a lot of people had become detached from the labor force in 2008. Many were unsure what it would take to get these individuals to reattach but it seems like it is happening. However the author says that it seems unlikely the job market will continue to grow at this pace, and is unsure if this change will be undone by rising interest rates and a volatile global market. However, due to the combo of this increase and flat wage growth, the fed can be more patient about raising interest rates. In conclusion, Irwin says that the thing to do is to celebrate the Americans able to take advantage of this job creation and see what is to come.
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Although the fed can maybe be more patient about raising interest rates due to flat wage growth, the gap for low capability workers and higher wage may result in unemployment for these workers explaining perhaps one of the factors for which the author doesn't think the job market will continue to grow at the same pace.
ReplyDeleteI thought this was a good read because it talked about how there has been a increase in the amount of people working. I thought that this was a good thing for the economy. and since there is a flat wage rate with this increase of people the fed can be more patient about raising the interest rates and do things to control inflation.
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