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The following article was published in our article directory on December 6, 2010.
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United States Employment Fatigue Cumbrance Economy Recovery

Article Category: Business Management

Author Name: Amanda xzh

U.S. Department of Labor released the November employment data, the results were depressing: the employment of 3.9 million new month, far below market expectations of 16 million people, and in October compared to the additional 17.2 million people, is a great regression. Since a large number of new labor into the market, the U.S. unemployment rate of 9.6% pushed to new highs after the maintenance period, reaching 9.8%. The job market does not give power to the U.S. economy once again cast a shadow over prospects for recovery.

No confusing employment growth

If, together with the hopeless employment of persons forced out of the job market, the U.S. unemployment rate of not less than 15% of the actual

Recently, people returning to the U.S. economy optimism, a series of positive data have been disclosed, including rising consumer confidence, retail sales strength, housing sales increase in two months of growth in construction spending, corporate profit margins record 60 year high and the momentum of recovery in the automotive industry and so on. The good news to many economists that the U.S. economy presented in June this year slowdown trend is entering a new turning point, the job market rebound will not be long. However, the new release of employment data apparently warming to the optimism that had just poured a pot of cold water. As much difference as expected, some analysts find it difficult to accept this data, that there may be statistical errors. But more economists in the accident, apart from depression have to admit that the U.S. economy has shown job growth in the non-puzzling phenomenon that has not changed, the U.S. job market to recover to pre-crisis levels there is still a long way to go.

Americans are facing today, they experienced the most severe employment situation. December 2007 recession, the U.S. unemployment rate below 5%, almost as full employment. 3 years, the U.S. unemployment has doubled, up to 15 million unemployed, of which 6.3 million unemployed for more than 6 months of the long-term unemployed, youth unemployment ratio of 20 century, 30 years the highest level since the Great Depression. If, together with the hopeless employment of persons forced out of the job market, the actual unemployment rate in the United States not less than 15%. Although the recession has ended, but many Americans still feel the pain of recession: Almost everyone has friends or family in the unemployed. For many unemployed people, the hope of finding work is still very slim.

Structural change is the crux of the problem

Over the past few decades, three major factors to bring about a structural change in the labor market, and economic policy has failed to make timely adjustments

No employment growth in the U.S. economy the crux of what? How to solve this problem? This is the U.S. political, academic focus. In the United States Department of Labor employment data released the same day, the Brookings Institution and the Center for American Progress think tank, the two jointly launched the "future of American jobs" report. The report that the United States deep reason behind the high unemployment rate is the labor market over the past few decades the accumulation of structural problems, economic recession led to the problem is the concentration of the outbreak. In the past few decades, three major factors that brought the U.S. labor market, structural change, and U.S. economic policy has failed to make timely adjustments.

First, information and communication technologies has led to the rapid development of the polarization of employment opportunities, employment growth is concentrated in those who need low-skilled and highly skilled sectors, and in the middle between the skills of management, production, operation, etc. Work is due to the development of automation technology greatly reduced the number of workers needed.

Second, economic globalization changed the world economy. Production, trade, services, etc., can be on a global scale to obtain a more affordable cost. China, India, Brazil, Russia, and global economic ties decades ago the country was not close, and now the global manufacturing, field services and raw materials are playing an increasingly important role. The report stressed that the threat of economic globalization, developing countries are not taken away the American worker "rice bowls", but the skills of American workers have the competitiveness in the era of globalization greatly reduced.

Third, higher education level of American workers increased slowly. As technology advances, the skills requirements of employers of workers have gone. 1970, 20% of American adult men aged 25-34 have a college diploma, to 2008, this figure rose to 26% only. Seventies and eighties of the 20th century, the proportion of Americans have bachelor's degrees first in the world into the 21st century, a few do this advantage disappears. The report concluded that although the United States has a world-class universities, but the United States of primary education is very poor, there is no transportation for the United States a large number of qualified university students. In the U.S. labor market, there is "supply and demand mismatch" phenomenon, that is, on the one hand a large number of unemployed people, on the one hand there are a lot of jobs can not find workers with the right skills.

Fundamental need new ideas to improve

Fundamentally improve the competitiveness of American workers must be the context of economic globalization, the economic policy of the United States re-planning

"The future of U.S. employment," the report, to improve the employment situation of the United States to ensure the competitiveness of American workers, the U.S. government needs new ideas, new methods must be both short and long-term strategic goals. Extension of time for the release of unemployment benefits, tax incentives, and even the introduction of new stimulus measures, may have some short-term effect, but to fundamentally enhance the competitiveness of American workers must be the context of economic globalization, re-planning of the United States economic policy. Such as revising a century ago formed the company in the tax laws to encourage U.S. companies to keep jobs in the United States. Reduce the U.S. budget deficit, the government has the money to invest in infrastructure and basic education, improve the skill levels of American workers and increase employment of the unemployed re-training, elimination of the job market "supply and demand mismatch" phenomenon.

Structural challenges of the labor market, destined to the recovery of the U.S. job market to lag the economic recovery than many. Prior to a Brookings Institution report on the analysis of employment, even if the U.S. economy created 208,000 jobs per month to calculate the positions, the U.S. job market still need 11.5 years to recover to pre-recession levels.

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