Tag: Job Loss

Saturday Soother – September 5, 2020

The Daily Escape:

Rocky Mountain NP, CO – August 2020 photo by mister69darkhorse

Let’s take a break from talking about politics, and talk about the economy. The NYT reported that the US added 1.4 million jobs in August, and unemployment fell to 8.4%

“Employers continued to bring back furloughed workers last month, but at a far slower pace than in the spring, and millions of Americans remain out of work.’

The August job growth number includes 240,000 temporary Census workers. Most of them will be laid off at the end of the month. Private-sector payrolls, (unaffected by census hires), rose by 1.0 million in August, down from 1.5 million in July. And the results were down sharply from the 4.8 million jobs added in June.

But despite the improvement in the headline unemployment rate, payrolls remain more than 11 million jobs below their pre-pandemic level, and permanent jobs lost increased by 534,000 to 3.1 million. Back in April, nearly 80% of unemployed workers reported being on a temporary layoff or furlough. In August, less than half say what they’re experiencing is a temporary job loss.

At the rate of job gains in the past two months, it will take another 8 months to regain all the jobs lost in the first two months of the pandemic

Also, the shift from temporary to permanent job losses is worrying, because it suggests that companies don’t foresee a quick rebound. It means many of today’s jobless workers will have to start their job searches from scratch. Worse, Wolf Richter reports that:

“Continued unemployment claims jumped by 2.2 million to 29.2 million, worst since Aug 1, as claims by gig workers under federal PUA program soar.”

The PUA program means the Pandemic Unemployment Assistance program. Wolf says that those 29.2 million lucky duckies now equal 18.3% of the civilian labor force.

Most of the media are saying that this report is relatively helpful to Trump. Those who see it that way should explain to the rest of us how it’s helpful to have 18% of the workforce on the sidelines. There will only be one more jobs report before the election, and unless there is a jobs miracle next month, Trump is going to face Election Day with an extremely poor jobs record.

For some context on Trump’s economic performance, the IRS now predicts that the US economy will have almost 40 million fewer jobs in 2021 than they predicted before the pandemic.

We’re maybe a month away from people understanding that despite Trump’s cheerleading, the economy isn’t going to “bounce right back” to near-full activity. In fact the current jobs depression will most likely continue for a long time, regardless of COVID, until there is widespread acceptance that we have a vaccine that is safe and effective.

Once again, there are just 58 days to go until Election Day. Biden needs to stay on offense, and attacking Trump on his poor economy is as good as attacking him on his COVID response. Sometime in the next two weeks, Coronavirus deaths will top 200,000. Yet there are still 17 states in which residents are not required to wear masks outside their homes. And all but one (Hawaii) have Republican governors.

No masks means a continuing weak jobs market. Even the Fed Chair Powell told NPR on Friday:

“There’s actually enormous economic gains to be had nationwide from people wearing masks and keeping their distance…”

But hey, this wouldn’t be happening if Donald Trump was president, right?

One final thought before we leave the politics bubble: Kamala Harris is older now than LBJ was on the day he signed the 1964 Civil Rights Act into law.

On to our long Labor Day weekend, when we can unplug and finish a couple of projects that we swore we’d get to while working from home. Forget them. Let’s get the holiday going with our Saturday Soother!

Start by brewing up a vente cup of Ethiopia Dame Dabaye ($16/12oz.) with its flavors of orchid, red plum, and lemon verbena. It’s brewed by Spokane, Washington’s Indaba Coffee, whose mission is “radical hospitality.” Not sure that’s something Wrongo wants to see.

Settle back at a proper physical distance, and listen to “September Song”, with music by Kurt Weill, and lyrics by Maxwell Anderson. It was introduced in the 1938 Broadway musical “Knickerbocker Holiday”. Here it is sung by Sarah Vaughn, backed by an all-star group including Clifford Brown on trumpet and Herbie Mann on flute. It was recorded on December 18, 1954, and you’ll enjoy Clifford Brown’s long trumpet solo:

Although the song was written as the lament of an old man on the passing of his youth, many women have recorded it, including Ella Fitzgerald, Eartha Kitt, Jo Stafford, Patti Page, Lena Horne and Eydie Gormé.

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Saturday Soother, January 7, 2017

Happy Birthday today Kelly!! Other than that happy fact, little went right in America this week. Our Overlord, Donald I, rode to a presidential win by saying he would bring jobs back to America that have been lost to automation and offshoring by US companies.

But economists have said for years that creating jobs for low skilled Americans will be difficult. Here is further evidence that bringing back jobs may be tougher than Trump thinks. Salon reports that for men ages 25 to 54, the work statistics are poor:

For this group, labor force participation has sunk to 88.5% from a 1954 peak of 97.9%. Most of that loss has occurred among men who have a high school degree or less, according to a report this year by the Obama administration.

And there are interesting facts to consider where unemployed men are concerned. The NYT’s Upshot reports that the jobs that have been disappearing, like machine operator, are predominantly those that men do, while the occupations that are growing, employ mostly women. More from Upshot:

Of the fastest-growing jobs, many are various types of health aides, which are about 90% female. When men take these so-called pink-collar jobs, they have more job security and wage growth than in blue-collar work, according to recent research. But they are paid less and feel stigmatized.

Upshot quotes David Autor, an economist at M.I.T.:

The jobs being created are very different than the jobs being eliminated…I’m not worried about whether there will be jobs. I’m very worried about whether there will be jobs for low-educated adults, especially the males, who seem very reluctant to take the new jobs.

The issue is America’s culture of masculinity. Andrew Cherlin, a sociologist and public policy professor at Johns Hopkins says:

Traditional masculinity is standing in the way of working-class men’s employment…We have a cultural lag where our views of masculinity have not caught up to the change in the job market.

Why is it that men can get away with saying that they deserve better than women? Perhaps that is a rhetorical question. After all, we elected Donald Trump, who can get away with anything.

The Salon article had this snippet: (emphasis by the Wrongologist)

Health problems and the opioid epidemic may also be a major barrier to work, according to research by Alan Krueger, a Princeton economist and former Obama adviser. Nearly half of men ages 25 through 54 who are neither working nor looking for work, take pain medication daily.

Some of these men may have been injured on the job and were subsequently laid off. But some may also represent part of the huge increase in opioid use in America. They may be part of the increase in disability cases since the Great Recession: More than 10 million Americans received Social Security disability benefits in 2014 (most recent statistics). Benefits paid to disabled workers totaled $11.4 billion per month nationwide, a substantial increase from the $6.1 billion paid monthly in 2004. The top three states receiving disability benefits are West Virginia, Alabama and Arkansas.

We became this society honestly. Our politicians hold our corporations in high esteem. The corporations repay us by automating most jobs and shipping other jobs overseas. They do this with little or no responsibility to help displaced workers retrain, or find new work. They do this while asking for bigger tax breaks to remain domiciled in the US. They do this while blaming our education system for not providing trained, ready-to-work job entrants at no cost to them.

We just cannot count on them to be good corporate citizens.

Those on pain killers may or may not have disabilities that prevent them from working. But in any case, society does not owe unemployed working age men permanent, high paying manufacturing or mining jobs, despite whatever efforts Trump may make.

It is time for them to adapt.

We need a soother. Here is Grex Vocalis a Norwegian chorus formed in 1971. Grex Vocalis has reached the finals of the BBC contest “Let the Peoples Sing” three times. In this video they are performing “An Irish Blessing” (May the road rise to meet you) written by an American, James E. Moore in 1987, live at the Amadeo RoldĂĄn Theatre in Havana Cuba:

A Norwegian chorus performing an Irish tune, written by an American, in Cuba. That’s gotta be soothing.

For those who read the Wrongologist in email, you can view the video here.

Sample Lyrics:

May the sun make your days bright

May the stars illuminate your nights

May the flowers bloom along your path

Your house stand firm against the storm.

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Trump Promised Jobs. That’s Why He Won

Take a good look at this map. It shows which counties switched parties in the 2016 US Presidential election compared to 2012. Red counties switched from Democrat to Republican, blue counties switched from Republican to Democrat and the vast majority in grey did not switch parties:

counties-that-changed-partys

Source: Brilliant Maps

Of course, it doesn’t show vote margin or size of the total vote in each county. The main thing this map shows is the large number of counties in the North East and Midwest that flipped to Trump, after having been Democratic counties in the prior election. The effect was large enough to deliver the normally Democratic leaning states of Iowa, Michigan, Pennsylvania, and Wisconsin into the Republican camp.

Tim Duy has an article about how economists and most politicians get so wrapped up that they miss the human element in economic dislocations. Duy makes the point that they ignore two of the negative impacts of job losses. First, they say how lost jobs free up human capital for use elsewhere in the economy. Of course, as jobs are added to the economy, skill levels and training determine whether laid-off workers are part of that equation.

“High-skilled” workers is what we need, but they are not always the kind of workers that were laid off.

Second, Duy reminds us that most workers have little ability to move to where better jobs might be found. Politicians tell us that the economy is shifting to urban and suburban areas; to higher skilled jobs; that workers must go and get retrained. That misses the point.

Most new jobs for those who were laid off will only be found if workers are able to relocate, to move from rural or devastated urban locations to geographic areas where jobs are expanding. Duy notes it is particularly difficult for rural areas:

The speed of regional labor market adjustment to shocks is agonizingly slow in any area that lacks a critical mass of population…Relative to life spans, in many cases the shocks might as well be permanent.

We don’t have answers for most of these communities. Rural and urban economic re-development is hard. The people living in these regions have experienced job losses (or no jobs growth) for decades; positive jobs growth has occurred elsewhere.

And the laid-off workforce isn’t mobile. In effect, we have limited access to housing in our major cities by pushing housing costs beyond the reach of most middle class workers. This, from Kevin Erdmann:

If you lost your manufacturing job in Buffalo, and you’re thinking of moving to New York City because there are more jobs there, you might decide not to move because it is too expensive. It is the affordability that is keeping you out. But, even here, the affordability problem is just the messenger. It is the rationing mechanism for a housing stock that is relatively fixed for political reasons.

If you decide to move to the NYC area, you see that the housing supply is largely fixed. New buildings are hard to get through zoning. Construction costs in big cities are very high. Income taxes are rising rapidly.

Erdmann makes the point that housing in big cities doesn’t move up with increased demand:

So, it doesn’t matter if Brooklyn apartments rent for $500, or $1,000, or $2,000, or $4,000. There isn’t one for you. Fixing this by fixing affordability isn’t going to change the supply curve. It’s simply substituting non-monetary rationing mechanisms for the monetary one.

Trump’s message that US firms need to consider domestic jobs as much as their bottom line, also resonated with middle and upper-middle class households. OTOH, it’s not like Trump took on the Coal Industry on behalf of workers. He blamed federal environmental policy, but that isn’t what caused the loss of coal industry jobs.

Trump doesn’t really have any answers, but he pretends to care while pretending to have answers. Pretending to care and pretending to have answers gave him the switched counties on the electoral map above. People want work. They want secure jobs.

Trump might be running a “jobs” scam, but if it fails, what is the Democrats’ alternative?

We have four years until the next election, two if you are looking at Congress. What policies will work? Will we just trade Trump’s scam for another one peddled by the establishment?

Business as usual hasn’t delivered. The idea that economic growth creates jobs is a pipe dream for many: For the past 40 years, economic growth did not improve wages.

Trump’s promise swung the election. If he fails, what will be the Democrats’ response?

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