TIME: The 3% Economy
Last edited Sun Sep 28, 2014, 04:57 PM - Edit history (1)
http://time.com/3429656/the-3-economy/A little over three years ago, I wrote a column titled The 2% Economy, explaining how a recovery with only 2% GDP growth, no new middle-class jobs and stagnant wages wasnt really a recovery after all. Like everyone, I hoped that once growth kicked up to about 3%, middle-class jobs and wages would finally revive.
But were now in a 3% economy, and Im writing the same column. Only this time, the message is more disturbing. Growth is back. Unemployment is down. But only a fraction of the jobs lost during the Great Recession that pay more than $15 per hour have been found. And wage growth is still hovering near zero, where its been for the past decade. Something is very, very broken in our economy.
Its a change thats been coming for 20 years. From World War II to the 1980s, according to data from the McKinsey Global Institute, it took roughly six months after GDP rebounded from a recession for employment to recovery fully. But in the 199091 recession and recovery, it took 15 months, and in 2001 it took 39 months. This time around, its taken 41 monthsmore than three yearsto replace the jobs lost in the Great Recession. And while the quantity has come back, the quality hasnt. The job market, as everyone knows, is extremely bifurcated:
erpowers
(9,350 posts)Middle class jobs are coming back and they have been coming back for years. The problem seems to be that very few people were trained for the jobs that are coming back and have been coming back. Another problem may be that for years people were not encouraged to train for these jobs because even though they were middle class jobs, people did not see these jobs as middle class jobs and probably did not know how well these jobs paid. A number of companies are trying hard to find welders, electricans, and machinists. Companies are also looking to fill other middle class jobs.
littlemissmartypants
(22,656 posts)With each of those knowledgeable craftspeople is a dream for me. I find wielding and the machinist trade interesting. I want to peen everything.
Oh, once I was hit by a tire during a pit stop. I liked it.
Love, Peace and the Righteous Fight!
~ littlemissmartypants 🙆
America is on the move.