Free Newsletters - Space - Defense - Environment - Energy - Solar - Nuclear
..
. Earth Science News .




POLITICAL ECONOMY
Outside View: Growing more U.S. jobs
by Peter Morici
College Park, Md. (UPI) Apr 5, 2013


disclaimer: image is for illustration purposes only

The U.S. Labor Department announced the U.S. economy only created 88,000 jobs in March as many more adults quit looking for work than found jobs -- for many Americans, good job remain tough to find.

The headline unemployment rate is 7.6 percent but adding in adults who are discouraged and quit looking for work and part-timers, preferring full-time positions, the jobless rate is 13.8 percent. And, for many years, inflation-adjusted wages have been falling and income inequality rising.

Sluggish growth is one culprit -- the Bush expansion delivered only 2.1 percent annual gross domestic product growth -- that's about the same as the Obama recovery after 42 months. However, globalization and technological progress have wrought fundamental changes that rapid growth alone can't fix.

Cheaper natural gas and rising wages in China make the United States more attractive for manufacturing. However, new factories require very few workers -- engineers have applied the wizardry of handheld devices to factory automation with amazing results.

Similar progress has reduced many business support positions ranging from secretaries to travel agents. All, slicing demand for workers with a general high school education.

Over the last decade, the same thing has happened to college graduates occupying middle management and similar professional positions. Consequently, college graduates have been taking jobs once predominantly filled by high school graduates -- insurance agents and adjusters, retail managers, to name a few -- and the earnings advantage of college graduates over less-educated workers has narrowed.

Well-paying jobs abound for college graduates in technical areas -- accounting, engineering, nursing and the like -- but not for those with degrees in liberal arts and general business. Similarly, high school graduates with some additional training, often through a community college, can find good jobs, for example, in the energy, medical and hospitality sectors.

All this gives rise to widening income inequality between those who have specialized skills and those who don't and it imposes particular burdens on the two bookends of the labor force -- recent grads and workers older than 50.

Recent liberal arts graduates face particular difficulty getting that first decent job -- such as in finance or the media -- where employer training and entry-level experience combine to impart job-specific skills that permit them to climb the ladder.

Displaced older workers face much longer periods of unemployment and many never secure positions that pay as well as the jobs lost. Many are digging into retirement savings well before they are 65, creating an army of near-indigent elderly a decade or two from now.

To combat unemployment, the Federal Reserve has kept mortgage interest rates low, but this penalizes the elderly who rely on certificates of deposit and fixed-income investments. They are returning to work, often taking jobs and displacing younger workers.

Stronger growth would help and is possible. Forty-two months into the Reagan recovery, GDP was advancing at a 5.2 percent annual pace -- that would bring unemployment down to 5 percent pretty quickly.

More rapid growth requires importing less and exporting more -- dealing with the $500 billion trade deficit on oil, by drilling more offshore and in Alaska, and with China, by addressing its undervalued currency and protectionism.

Faster growth also requires right sizing business regulations to make investing in new jobs less expensive and time consuming. Regulatory enforcement is needed to protect the environment, consumers and financial stability but must be delivered cost effectively and quickly to add genuine value.

However, unless the United States wants to sell what it makes cheaply, like so many Asian economies, it must have a smarter, savvier and better trained workforce.

Parents don't want their offspring on the vocational track. Hence, high schools have become, overwhelmingly, college preparatory institutions, when it is possible to prepare many graduates to directly enter the labor force in technical areas.

College students don't want the hard slog through nursing or engineering. Art history and economics are easier and less intruding on the social aspect of college. And universities are too much run by professors who prefer to contemplate the shortcomings of their civilization than train young people to build it.

In a nutshell, more and better jobs require pro-growth trade, energy and regulatory policies, and more realistic expectations among parents, students and the high schools and universities that train workers.

(Peter Morici is an economist and professor at the Smith School of Business,, University of Maryland, and widely published columnist. Follow him on Twitter: @pmorici1)

(United Press International's "Outside View" commentaries are written by outside contributors who specialize in a variety of important issues. The views expressed do not necessarily reflect those of United Press International. In the interests of creating an open forum, original submissions are invited.)

.


Related Links
The Economy






Comment on this article via your Facebook, Yahoo, AOL, Hotmail login.

Share this article via these popular social media networks
del.icio.usdel.icio.us DiggDigg RedditReddit GoogleGoogle




Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News





POLITICAL ECONOMY
Dismal US jobs report, Iran talks weigh on oil
New York (AFP) April 5, 2013
Global oil prices fell further on Friday after a dismal US jobs report renewed concerns about the strength of the world's biggest economy and traders kept an eye on Iran nuclear talks. New York's main contract, West Texas Intermediate (WTI) for May, closed at $92.70 a barrel on the New York Mercantile Exchange, down 56 cents from Thursday. Brent North Sea crude for delivery in May dived ... read more


POLITICAL ECONOMY
Fukushima fuel cooling system stops again:TEPCO

Environmental policies matter for growing megacities

Finland's Fennovoima in talks with Rosatom over reactor

US drivers talk and text as much as ever

POLITICAL ECONOMY
Michigan Tech researcher slashes optics laboratory costs

CO2 could produce valuable chemical cheaply

Catalyst in a teacup: New approach to chemical reduction

Lasers could yield particle research tool

POLITICAL ECONOMY
Chinese foreign fisheries catch 12 times more than reported

Shark tooth weapons reveal missing shark species in Central Pacific islands

Tiny Grazers Play Key Role in Marine Ecosystem Health

'A better path' toward projecting, planning for rising seas on a warmer Earth

POLITICAL ECONOMY
New models predict drastically greener Arctic in coming decades

Ice cores preserve 1,800 years of climate

2013 Wintertime Arctic Sea Ice Maximum Fifth Lowest on Record

Thin clouds drove Greenland's record-breaking 2012 ice melt

POLITICAL ECONOMY
Shanghai stops poultry trade on bird flu fears

Organic Labels Bias Consumers Perceptions through the "Health halo effect"

Gene discovery may yield lettuce that will sprout in hot weather

UGA researchers track down gene responsible for short stature of dwarf pearl millet

POLITICAL ECONOMY
Italy marks fourth anniversary of L'Aquila quake

7.1-magnitude quake causes panic in Indonesia's Papua

Quake shakes buildings in Manila

Toll climbs to 59 in deadly Argentina flooding

POLITICAL ECONOMY
Congolese pygmy seeks to enlighten his kin

Guinea-Bissau ex-navy chief held on US drug charges

S.Africa pulls troops from C.Africa after deadly firefight

Dutchman arrested in Guinea-Bissau for coup 'misinformation'

POLITICAL ECONOMY
Scientists identify brain's 'molecular memory switch'

Researchers successfully map fountain of youth

First evidence of Neanderthal/human mix

Urban vegetation deters crime in Philadelphia




The content herein, unless otherwise known to be public domain, are Copyright 1995-2014 - Space Media Network. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement,agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. Privacy Statement