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Sun Oct 7, 2012, 05:15 AM

 

8% Of The Pre-Great Recession Workforce Still MIA

Last edited Sun Oct 7, 2012, 03:43 PM - Edit history (1)

Indexed per capita inflation adjusted income for employee compensation (blue line) and Indexed employment population ratio (red line)



Likely our averaged and homogenized data is missing the point - the USA economy is screwed up because 8% of the pre-recession workforce has been vaporized (the red line on the above graph is currently at 92% of the pre-recession peak).

If one is on social security, in some other social safety net, employed, or the 0.001% - the new normal may not that bad. You may pity the jobless, but you may be missing the reality that 8% loss of jobs caused the economy to lose 8% of its prime driver - Joe "the consumer" Sixpack. With over 2/3rds of the economy consumer driven, the solution is obvious - create 24 million jobs.

Since the end of World War II, the economy has not been faced with such a large employment slack.

http://seekingalpha.com/article/908641-8-of-the-pre-great-recession-workforce-still-mia






We will leave the exploring up to you, but it is remarkable to note that the 65 and over was the only segment to experience a rising Labor Force Participation Rate. Seniors are rejoining (or never leaving) the working ranks. This might be due to the economic hardship, the desire to continue working, pension shortfalls, etc. We will be addressing the pension issue very soon. There are many more observations, but we’ll leave it at that.

http://econnewsletter.com/123901.html

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 06:40 AM

1. and many of us are working at jobs making half what we used to make.

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Response to KG (Reply #1)

Sun Oct 7, 2012, 09:52 AM

13. Across the history of work, skill shifts have caused under-employment.

That is a reality of life and has been for the duration of humankind and work. The industrial revolution idled workers that had no skill other than their muscle and backs. The invention of the automobile idled workers that had skills suitable for the era of the horse and buggy. In both those changes, a percentage of workers were underemployed. I am one that think full employment is impossible, what we have to do as a society is have the fortunate share more with the unfortunate, but that model will work only if the fortunate are mandated to share and the unfortunate use the lifeline wisely.

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 07:26 AM

2. Imagine less than 100% obstruction.

I sure hope we get a Dem Congress this election. We need to disable the obstruction machine.

Julie

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 07:57 AM

3. Du rec. Nt

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 08:22 AM

4. Some of that can be attributed to fundamental shift of the economy

 

the shift can be due to technology and paradigm shift (oh.. horror, archaic words ). Productivity increases may mean a number of jobs will be loss permanently. Painful adjustment in human terms.

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Response to JackN415 (Reply #4)

Sun Oct 7, 2012, 09:42 AM

12. Or that the largest workforce in USA history is retiring at a fast rate. nt

I do agree on technology. Technology will make our lives better on average, but will be brutal on the poorly educated or poorly skilled. I have pondered how humankind will utilize technology without having massive pools of unemployed. The only solution that I can think of involves those that profit from the use of technology giving up some of their gains to help those negatively impacted by technology retrain for jobs that are in demand or for anticipated job fields. In addition, fewer babies must be produced, with the best path for that being some people choosing to remain childless, while those that do have children don't have more than two.

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Response to bluestate10 (Reply #12)

Sun Oct 7, 2012, 10:27 AM

16. Yes, early-retired baby boomers could have contributed to this trend...

 

Leave it to economists to figure it out. There are many research on socio-disruptive technology and this is one of the latest books on the subject:

Race Against the Machine: How the Digital Revolution is Accelerating Innovation, Driving Productivity, and Irreversibly Transforming Employment and the Economy
Erik Brynjolfsson (Author), Andrew McAfee (Author)
http://www.amazon.com/Race-Against-Machine-Accelerating-Productivity/dp/0984725113/

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 08:43 AM

5. Question.

In the face of hostility to illegal immigrant workers, could their returning home affect these numbers? Many paid social security taxes under other SS numbers.

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 09:15 AM

6. Since mid 2010, 10,000 boomers a day have been leaving the workforce.

Could the missing 8% be in part explained by this unprecedented mass retirement?

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Response to Surya Gayatri (Reply #6)

Sun Oct 7, 2012, 09:35 AM

8. Probably. But the OP is not concerned about that. Obama bashing in disguise seems to be

the intent.

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Response to bluestate10 (Reply #8)

Sun Oct 7, 2012, 09:40 AM

11. Read the OP's posts in Education, look at the join date--it should ring a Bell. nt

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 09:33 AM

7. Why do you seem to insist on putting out republican talking points? Now for your graph.

I have a pretty well trained technical mind. What I see in your graph that wages and employment were on a free-fall leading up to the time Obama took office. Wages and employment stabilized during Obama first years and now wages are increasing while employment remains far more stable than it was under Bush.

Why don't you spend your energy writing about the unprecedented obstruction that President Obama has faced from republicans any time the President has tried to make policy that helps every day americans?

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Response to bluestate10 (Reply #7)

Sun Oct 7, 2012, 09:38 AM

10. It rings a Bell, does it not???? nt

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Response to bluestate10 (Reply #7)

Sun Oct 7, 2012, 02:45 PM

17. answer: see below:

 

Mitt Romney: Free Speech Is for Billionaires, Not School-Teachers

http://www.democraticunderground.com/10021441430


Mitt Romney's Income Was Not Taxed at the Corporate Level (No double taxation)

http://www.democraticunderground.com/10021446184


No, Virginia, Mitt Romney Did Not Pay 14.1% in Taxes in 2011 - he paid less

http://www.democraticunderground.com/10021416602


GOP/romney says government workers overpaid 30-40% on average.

http://www.democraticunderground.com/10021399666


Romney would privatize amtrak

http://www.democraticunderground.com/10021399412


Vouchers Unspoken, Romney Hails School Choice

http://www.democraticunderground.com/11243702


I don't post "republican talking points". i post about issues that concern me, & i post data that is to the best of my knowledge, truthful.

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Response to HiPointDem (Original post)

Sun Oct 7, 2012, 09:37 AM

9. UNREC for omission " above graph prepared before Friday's BLS jobs report." So graph is OLD, but

you post it anyway???


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Response to msanthrope (Reply #9)

Sun Oct 7, 2012, 09:56 AM

14. Plus, the graph that is posted clearly shows that Obama stabilized and uplifted

wages and employment. I have some doubts Abbot the poster, that poster always seem to post Obama or democrat bashing stuff. But I had similar concerns bout MadHound, only to find that poster to be a passionate liberal that is simply off cord with my thinking. May be that situation exists with the OP. I am one of the more centrist posters on DU.

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Response to bluestate10 (Reply #14)

Sun Oct 7, 2012, 10:07 AM

15. I pm'ed you.

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