Quote:
Originally Posted by After Shock Media
Keep in mind the job situation has not yet played out either. Our nation has been averaging a negative 70k jobs per month for over a year now. Almost all economists declare that the job market needs to create 100k jobs a month just to account for new people entering the job market.
So if we have a need for 100k jobs to be created each month for the people just entering the market sitting on top of an average of negative 70k jobs a month of people loosing jobs for over a year. That becomes a huge ass number. Well way beyond just the jobs lost that people are currently talking about (just the 70k).
Then they do tabulate unemployment in a fucked up way. Eventually if someone has been without a job long enough so that they are not longer collecting a check they no longer count stat wise.
This turns into a lot of people who can not pay bills, borrow money, spend money, or so forth. Running into the holiday season soon to boot as well when many companies make their bottom lines. Few will be spending money let alone have any to spend beyond any bills they can pay. This will lead to more budget cuts by companies which will be more lay offs. Turns into a vicious circle.
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Not to mention that our workforce is going through is shift. The middle class in America was built on manufacturing jobs. There were jobs that any high school graduate could get and after working it for a while could start to make good enough money that they could buy a house and raise a family. Those jobs are now being shipped overseas. Companies don't want to pay people $20 an hour for the same job they can pay a Guatemalan $2 a day for and with the outsourced jobs they don't have to provide health coverage, 401K, disability, unemployment, social security and they don't deal with things like OSHA regulation.
These manufacturing jobs are being replaced with lower paying service and retail jobs and good paying IT jobs. So your average manufacturing guy, when he loses his job, either has to take a lower paying job or go back to school and learn a new trade and this adaption to the market change is helping to cause unemployment to rise and the job market to be off center.