http://www.economist.com/blogs/freeexchange/2015/02/americas-labour-market
This article discusses the idea that more jobs are being created in the country. He talks about how there is still a high unemployment level, but this is alright because it is because more jobs are being created, not because people are not finding work. The article also discusses how wages for lower skilled jobs (the jobs that were being created) have increased since December. The author states, "At the end of December 2013, Congress refused to re-authorize legislation that provided very long-term benefits to the unemployed. Overnight, in some states the maximum time that you could receive unemployment benefits dropped from 73 weeks to 26 weeks. Almost all states experienced a big drop." The author later goes on to explain that because of this, more people are willing to go out and find work for lower wages because it is better than not receiving anything. Personally, I think that this is good because it almost forces individuals to go out and find a job, rather than staying on unemployment for long periods of time.
3 comments:
With the unemployment report that was released recently, there was a slight increase in unemployment which could be explained that there are actually more people actively seeking work. There are definitely higher paying jobs for unskilled labor which is very positive. It is no doubt that the U.S. economy is the healthiest in the world right now.
The US is experiencing an increase in the value of the dollar compared to many other countries in the world. This could potentially have a negative effect on US unemployment rates. With the dollar having greater purchasing power overseas its no surprise if businesses continue to spend more money outsourcing then here at home.
Because of higher labor supply, it is reasonable to say wage will slide later. Minimum wage policy gonna lead to large amount of excess labor supply unless new jobs for lower skilled labors can be created. However, I haven't seen any signal shows America could develop manufacture industry domestically in the recent years.
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