Comments on: Charts of the day: The rise in structural unemployment http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: lsjogren http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27801 Wed, 22 Jun 2011 23:00:35 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27801 “America no longer has much work for someone who hasn’t gone to college, but has a strong back and strong muscles and is willing to work hard.”

Unless you’re an illegal alien, in which case you are one of the Chosen People.

By the way, America no longer has much work for people in a lot of white collar professions as well.

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By: lsjogren http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27800 Wed, 22 Jun 2011 22:58:24 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27800 Clearly the problem is, as Krugman says, inadequate demand.

Take a country like Bangladesh. Clearly they are poor because they stubbornly refuse to buy SUVs, washing machines, and laptop computers.

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By: sinz541 http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27793 Wed, 22 Jun 2011 21:15:00 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27793 Here is where the structural unemployment is:

http://i53.tinypic.com/1exdhe.jpg

While manufacturing output has remained fairly constant at around 14% of GDP, manufacturing *employment* has collapsed, from 33% of the work force 50 years ago to only 10% today.

The reason? Automation.

The assembly lines that turn out computer chips and circuit boards are automated, with robots doing the work.

America no longer has much work for someone who hasn’t gone to college, but has a strong back and strong muscles and is willing to work hard. Today, machines do that kind of work.

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By: statusquobuster http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27792 Wed, 22 Jun 2011 20:41:40 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27792 Don’t just follow the money, follow the logic. Demand alone will not work to fix US economy. Consider that top 5% account for an amazing 36% of consumer spending; they clearly are doing just fine. Can the bottom 95% really boost spending enough to repair economy?? No way. For a better understanding of what is wrong with the US read this article on the two capitalisms:

http://www.nolanchart.com/article8752_Tw o_Capitalisms.html

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By: TFF http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27774 Wed, 22 Jun 2011 16:53:11 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27774 Seconding midpointman, much of our EMPLOYMENT over the past decade was in useless paper-shuffling positions. People were selling, financing, refinancing, appraising, brokering, securitizing…. All to keep the real estate bubble growing. None of them were doing anything useful.

Strip that segment out of the employment picture and we’ve had a structural unemployment problem for a while.

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By: midpointman http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27751 Wed, 22 Jun 2011 00:21:55 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27751 Krugman’s comment is simply wrong. Who can deny that the unemployment problem today is largely confined to several industries: Manufacturing and Construction?

For all of Krugman’s pointless bleating, if demand shot through the roof we would still have a huge glut of homes on the real estate market. It won’t help those workers one bit, especially if they are not trained to do work in services or retail or some other demand-driven industry.

If demand takes off tomorrow, it will benefit Chinese manufacturing workers substantially more than US manufacturing workers. Again, these workers simply do not have jobs to go back to. There is no employer that is waiting until demand returns to hire them back. Those plants are closed and those jobs are gone.

Workers in these industries have a skills gap–a mismatch between what the economy needs and what they can offer. Meanwhile, we have a huge shortage of trained knowledge workers with math and problem-solving skills.

Unless and until these workers get new skills, they are unemployed for the forseeable future, even if demand returns.

BTW, GDP is higher than it was at the peak of 2008. Yet we are doing it with 7 million fewer workers.

What does that tell you? Those workers have skills we really did not, or do not need anymore.

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By: SteveHamlin http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27730 Tue, 21 Jun 2011 14:22:32 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27730 Krugman on structural unemployment: “But don’t bother asking for evidence that justifies this bleak view (that structural unemployment is a problem). There isn’t any. On the contrary, all the facts suggest that high unemployment in America is the result of inadequate demand — full stop….In other words, structural unemployment is a fake problem, which mainly serves as an excuse for not pursuing real solutions.”

https://www.nytimes.com/2010/09/27/opini on/27krugman.html

See also Dean Baker: http://www.cepr.net/index.php/blogs/beat -the-press/robert-samuelson-calls-attent ion-to-the-incompetent-management-proble m

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By: FifthDecade http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27725 Tue, 21 Jun 2011 02:08:55 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27725 So long as politicians such as Senators and Representatives are sponsored and supported by rich corporations, and those same rich corporations make stuff in China or Viet Nam, nobody with any power will care much about the structural unemployment rate or look after those blighted by being a member of it.

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By: RZ0 http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27723 Tue, 21 Jun 2011 00:44:47 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27723 The paper seems to assume that a rise in the stock price within an industry should be accompanied by a rise in the employment rate in that industry.
Do I have to go on?

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By: politicalcalcs http://blogs.reuters.com/felix-salmon/2011/06/20/charts-of-the-day-the-rise-in-structural-unemployment/comment-page-1/#comment-27720 Mon, 20 Jun 2011 22:41:37 +0000 http://blogs.reuters.com/felix-salmon/?p=8709#comment-27720 Here’s where the largest portion of the structural change in U.S unemployment is to be found:

http://tinyurl.com/3d9q5em

Much of the remaining portion of the structural change in U.S. employment since 2006 is to be found at or below the minimum wage line:

http://tinyurl.com/3ly9zxa

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