JOBS – JOBS – JOBS! : Dennis Rakiey
Last week the Bureau of Labor Statistics (BLS) announced that the unemployment rate dropped to 7.8%. I can just imagine members of the administration and congress giving each other high fives!
In order to get a perspective of the unemployment issue, I went here http://data.bls.gov/cgi-bin/print.pl/news.release/empsit.a.htm to review the BLS data. In the past 12 months, on average 150,000 jobs per month were added. If we divide the 12 million unemployed by the 150,000 per month new jobs, we discover that it will take more than 6 years for the 12 million unemployed to find work. (This of course assumes no one new enters the work force.) If you are unemployed, it is a very discouraging predicament.
To illustrate the imbalance between business and labor, examine the following charts.
Corporate profits have soared!
While wages as a percent of GDP are at all-time lows.
And the gap between CEO’s and workers’ pay continues to widen and bears little relationship to corporate profits.