reagansghost
eternal
President Trump was lucky enough to inherit an economy that saw a record string of months with positive job growth and falling unemployment rates.
But the recent jobs report hinted that this rosy period may be coming to an end.
The U.S. Bureau of Labor Statistics reported that May saw a slowdown in net new additions to payroll and made downward revisions to earlier numbers released for March and April — clear signs that job growth has slowed. Unemployed workers are finding it increasingly difficult to land new jobs, with the share of unemployed workers on the hunt for more than six months rising. Unemployed women are more likely to drop out of looking for jobs than land a job in the following month.
What if this all signals more than just a one-off drop in job creation? What if, instead, we’re heading towards a downturn in the labor market?
The US economy is more fragile than it has been at this point in any previous economic expansion. Though this expansion only needs one more month to be the longest in U.S. economic history, a record number of households are more than 90 days late on their car loan payments. The sale of existing homes continues to fall to new lows, reflecting the difficulty for younger workers to form new households and transition from renters to homeowners. Their low earnings, low savings and high student debt compared to earlier generations all factor in here.
One oft-cited statistic points to just how unstable the finances of most Americans are: nearly 40 percent of households could not withstand an unexpected expenditure of $400 — the cost of just one medical bill or car repair.
The most unnerving point to keep in mind is that we are even less prepared for a sudden slowing of the economy than we were before the Great Recession of 2008.
That crisis taught us a key lesson: how important “automatic stabilizers” are to the economy. Those stabilizers, like unemployment insurance, pump money into households when the economy loses jobs and provides a floor to falling incomes and the subsequent decline in marketplace demand.
These are “automatic” because they do not require new legislation; when more people are eligible, the increase in expenditures happens automatically. In a Congress where Republicans voted against all economic proposals of President Obama during the recovery from the Great Recession, avoiding partisan gridlock is critical. Yet the unemployment insurance system is far weaker today than it was in 2008.
https://www.cnbc.com/2019/06/05/job...-halt-in-mayprivate-payrolls-up-just-27k.html
....opps, there goes Donny's only remaining talking point!
But the recent jobs report hinted that this rosy period may be coming to an end.
The U.S. Bureau of Labor Statistics reported that May saw a slowdown in net new additions to payroll and made downward revisions to earlier numbers released for March and April — clear signs that job growth has slowed. Unemployed workers are finding it increasingly difficult to land new jobs, with the share of unemployed workers on the hunt for more than six months rising. Unemployed women are more likely to drop out of looking for jobs than land a job in the following month.
What if this all signals more than just a one-off drop in job creation? What if, instead, we’re heading towards a downturn in the labor market?
The US economy is more fragile than it has been at this point in any previous economic expansion. Though this expansion only needs one more month to be the longest in U.S. economic history, a record number of households are more than 90 days late on their car loan payments. The sale of existing homes continues to fall to new lows, reflecting the difficulty for younger workers to form new households and transition from renters to homeowners. Their low earnings, low savings and high student debt compared to earlier generations all factor in here.
One oft-cited statistic points to just how unstable the finances of most Americans are: nearly 40 percent of households could not withstand an unexpected expenditure of $400 — the cost of just one medical bill or car repair.
The most unnerving point to keep in mind is that we are even less prepared for a sudden slowing of the economy than we were before the Great Recession of 2008.
That crisis taught us a key lesson: how important “automatic stabilizers” are to the economy. Those stabilizers, like unemployment insurance, pump money into households when the economy loses jobs and provides a floor to falling incomes and the subsequent decline in marketplace demand.
These are “automatic” because they do not require new legislation; when more people are eligible, the increase in expenditures happens automatically. In a Congress where Republicans voted against all economic proposals of President Obama during the recovery from the Great Recession, avoiding partisan gridlock is critical. Yet the unemployment insurance system is far weaker today than it was in 2008.
https://www.cnbc.com/2019/06/05/job...-halt-in-mayprivate-payrolls-up-just-27k.html
....opps, there goes Donny's only remaining talking point!
