Tagged Unemployment

What Happens when the Minimum Wage Is Raised?

Well, among other things, you get employers looking for ways to replace human workers with automated ones. To be sure, the process of worker automation is inevitable regardless of whether there has been an increase in the minimum wage. But if you are a human being interested in keeping a job, minimum wage increases–especially sharp and sudden increases to $15 per hour–don’t help human beings keep their jobs. The only thing they do is cause managers and bosses to look for ways to cheaply replace human labor.

Quote of the Day

At 9:30 a.m. on a sunny weekday, the phones at Candelia, a purveyor of sleek office furniture in Lille, France, rang steadily with orders from customers across the country and from Switzerland and Germany. A photocopier clacked rhythmically while more than a dozen workers processed sales, dealt with suppliers and arranged for desks and chairs to be shipped. Sabine de Buyzer, working in the accounting department, leaned into her computer and scanned a row of numbers. Candelia was doing well. Its revenue that week was outpacing expenses, even counting taxes and salaries. “We have to be profitable,” Ms. de Buyzer…

We Still Have an Employment Problem

So sayeth James Pethokoukis, and his argument is convincing. It may look as though unemployment is low, but that is only because those who are not actively searching for work, but would if their prospects were brighter, are not being counted, and underemployment (featuring those who are working part-time jobs, but who want full-time jobs) is not being factored into the picture. According to Pethokoukis, all of this “puts the ‘true’ jobless rate about 1.9 percentage points higher the official rate. So figure around 7½ percent.”

We Are Not Out of the Economic Woods Yet

For a while, recently, it looked as though the U.S. economy could create something on the order of 250,000 jobs per month, which got economic analysts thinking and hoping that at long last, the United States had turned the employment corner and would soon reach full employment–or something resembling full employment, at any rate. Those hopes took a serious hit, recently: The sputtering U.S. economy created just 126,000 jobs in March as bad weather, weak consumer spending and flailing corporate profits resulted in the worst report since December 2013. Economists expected nonfarm payrolls to rise 245,000 in March, with the…

Don’t Go Gaga over the Employment Picture

Look, I think it is great that the economy is adding nearly 300,000 jobs per month. We really do need that. But let’s keep in mind the fact that the type of jobs being created are not the type we want: The numbers seem terrific: a whopping 295,000 new jobs created in February, with 3.3 million new jobs added during the last 12 months. The pace of job creation now is comparable to the pace of the late 1990s, when the economy was booming. These are not boom times, however, and the fine print in the job numbers and other…

The Worst Analysis Regarding ISIL that You Have Ever Seen

Courtesy of Marie Harf, who actually has a job in our State Department, and who said the following regarding the war with ISIL: . . . We can not win this war by killing them. We can not kill our way out of this war. We need in the medium and longer term to go after the root causes that lead people to join these groups, whether it is lack of opportunity for jobs– Harf has now taken to Twitter to claim that her critics are too dumb to have properly understood her comments. Or something. To be sure, there is much…

Yes Virginia, Minimum Wage Laws Can Negatively Impact Employment

Behold. Of course, we can’t possibly expect the likes of Paul Krugman to stop pushing for minimum wage increases, even though he has now acknowledged that those increases have deleterious consequences. But the Internet is a wonderful thing, and with it, we can  hurl Krugman’s words back at him each time he derides anyone else for repeating them.

Another Poor Jobs Report

Have I mentioned recently how truly tired I am of writing blog posts lamenting the bad employment situation? A surprising drop in hiring and in the number of people seeking work in August sent a reminder that the U.S. economic recovery is still prone to temporary slowdowns. Employers added just 142,000 jobs last month, well below the 212,000 average of the previous 12 months. The unemployment rate fell to 6.1 percent from 6.2 percent. But that was because more people without jobs stopped looking for one and were no longer counted as unemployed. Analysts took Friday’s Labor Department report in…

In Praise of Janet Yellen

Her statement today, in which she mentioned that the Federal Reserve would watch to see how the employment market was doing before raising interest rates, is welcome news for just about anyone who is still concerned that the economic recovery is not on firm footing, and who believes that the job market still has a ways to go before we can be sanguine about the employment picture. Incidentally, I don’t read Yellen’s comments as being an indication that interest rates will rise soon. Rather, I read them as a preemptive strike against those who would increase interest rates well before…