Monday, February 14, 2011
Where are the workers?
The article is about how people who lost their jobs during the recession aren't necessarily trying to go back into the labor force now that the recession is over. The labor force isn't growing like it should. Many are claiming early retirement or going back to school. The participation rate has been steadily declining for the last 3 years which doesn't make sense considering the recession is over. Most notably, men aged 25-54, have not been entering back into the labor force for one reason or another. This affects the participation rate the most as they are usually the highest sector in the rate. I believe that the rate will see a gradual increase in the coming future, however.
Subscribe to:
Post Comments (Atom)
7 comments:
i think one problem that isn't helping our situation is the fact that unemployment benefits have recently been extended. if people are going to receive benefits for longer than there is less incentive to find a job after being fired. i think the government should consider decreasing these benefits.
I think that the Labor Participation rate could continue to drop constantly for the next 10-15 years. The boomers generation will be reaching the age of 65 and there will be constant retirements harming the labor force participation rate. Looking at the bright side, the lower labor participation could be accompanied by a lower unemployment rate due to a higher demand for labor due to such a high number of retirements.
I agree with both of the previous comments. Baby boomers retiring would cause a lot of drop out in the labor force (although this could be bad if they do not have enough money or are relying on social security only). However, people going back to school is always a good sign.
I also agree with the previous statements. WIth unemployment rates extending and providing more benefits, people are either being lazy and relying on the government or are choosing to do other options like going back to school or early retirement. As our economy is trying to get out of the recession, I think it is important jobs start opening up and people start taking them otherwise the circulation our economy needs will be lost. People cannot depend on the benefits unemployment or social security give them for forever. The government needs to give people incentives to want to enter the job market and get back onto their own two feet.
I think it will be interesting to see what happens in a few years when a lot of the currently unemployed people who have spent the time to go back to school re-enter the job market. While during the recession we say people competing over even the most basic entry level jobs it seems like we'll be able to see even more competition for higher paying jobs. I feel like this could lead to a bit of overcrowding in those types of jobs and people would once again be competing for any job they could get, even if it meant not utilizing their further education.
Why not go back to school with the economy as it is? Having a graduates degree will also boost students chances of grabbing a better job as well. As the speaker said today, employers are drawn to students that have achieved a graduate degree, knowing they are more qualified. Yet, experience in the field is also very important. However this article makes perfect since, especially in the current economy, where finding a job right of college isn't exactly a walk in the park.
The more government involvement there is in the labor market, the less flexible the labor market is. Fortunately, so far it hasn't been the case in the US. However, with the extended benefits for unemployed it seems like we are heading toward a welfare state. In my opinion, by extending the benefits the government, maybe just a little bit but slowed down the economic recovery by letting people sit at their homes.
Post a Comment