Thursday, February 6, 2014
New Fed Study on Jobs Crisis is Extremely Misleading
http://www.huffingtonpost.com/2014/02/04/new-york-fed-labor-market_n_4723769.html?ir=Business. Due 10 Feb 2014. Who is to blame for the jobs crisis? Analyze the graphs in the article and describe their information. Why are more people working past retirement?
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The government is to blame for our current job crisis. The recent drop in the official unemployment rate is a indicator of job-market status, and not a function of people giving up on finding work. The labor force has been falling in recent times and has drastically collapsed after the recession. The first graph indicates that since 1978 this is that lowest numbers have ever been. More elders are working after retirement because it is harder to retire than in the past when asset prices were high and rising. Costs are too high for the low pay of retirement checks.
ReplyDeleteBlame for our current job crisis falls upon the government. A major reason for the large drop in the labor force was a weak recovery and a lack of good job opportunities, both fostered by the government. The labor force decreased significantly after the recession. The first graph illustrates the decline of the labor-force participation in recent years, and that it has been falling since the start of the 2000. It also indicates that it truly collapsed after the recession, to the lowest levels since 1978. The second graph, the employment-population ratio, shows the percentage of adult Americans who currently hold a job. The graph shows a collapse towards a 30-year low during the recession one which has yet to be recovered. The last graph is a juxtaposition of Employment-population ratio and estimated E/P ratio. This graph emphasizes the fact that the current state of the job market is much more less than it should be. The reason for more people working past retirement is due to the fact that it is much harder to retire than in the past when asset prices were high and rising.
ReplyDeleteThe government is to be condemned for America's worsening job crisis. The major cause of the job crisis--a lack of adequate job opportunities and the weak recovery from the recession--is a problem that the government should take immediate and efficient action to fix, something it has clearly neglected to do a fine job of. It is simple to see from the first graph that the rate of the civilian labor force effort to search for jobs and work has decreased since the last recession. The second chart shows an even more dramatic perspective of the job crisis--a sharp decline in the employment-population ratio since the recession. The decline seems to have stabilized at a very low ratio, with no sign of increasing. The third graph compares the "estimated" employment-population ratio to the actual ratio of today. It indicates that there is only a 1.7% difference in what would be expected to what it currently is, therefore implying that the rate is where it should be. Accusing the Baby Boomer generation for these [sad] statistics, however, is immature and ridiculous because putting blame on them does not explain the many other side effects of the job crisis. With the high and rising asset prices of the past gone, many people now work past their retirement.
ReplyDeleteThe government must take a lot of the blame for what is going on in our job crisis. The above graph illustrates that during periods of recession, there was severe unemployment rates. However, this is very misleading because the graph y-axis uses small intervals of scale. A minor drop in employment on this graph would actually end up looking like a catastrophe. The New York Fed economists say this particular chart is misleading because it doesn't account for a mass of retirees. To fix this, they built a model, like economists do. And the model decided that way too many many people were working just before the recession. The graph actually indicates there is only a 1.7% in the two representations of unemployment. The overall effect of these employment conditions however will lead to many elderly people to continue to work until a later retirement for fear that they may not be able to support themselves even after years of being in the labor force.
ReplyDeleteThe government is the problem for a plethora of things, one mainly is the job crisis. The above graph illustrates that during periods of recession, there was severe unemployment rates. It is simple to see from the first graph that the rate of the civilian labor force effort to search for jobs and work has decreased since the last recession. The second chart shows an even more dramatic perspective of the job crisis a sharp decline in the employment-population ratio since the recession. The reason for more people working past retirement is due to the fact that it is much harder to retire than in the past when asset prices are high and rising.
ReplyDeleteThe government is entirely to blame for our societal job crisis. The graphs in the article regard to unemployment statistics. The graphs show us that the number of people employed is declining, and has exponentially declined within the last few years. In the first graph, one can see that, "labor-force participation has been falling since the start of the 21st century, but really collapsed after the recession, to the lowest levels since 1978." The second graph depicts a civilian employment population ratio.. It shows the amount of US citizens that currently have a job. The graph shows a collapse towards a 30-year low during the recession one which has yet to be recovered. The third graph depicts the actual employment-population ratio and the estimated employment-population ratio. The market has always remained around its estimate. However, recently, there has been a 1.7% drop. There are also many more people working past retirement. The article states that, "the proportion of older Americans with a job is higher now than in 2006, partly because it is harder to retire than in the past when asset prices were high and rising." With prices rising in this way, older people can sustain themselves financially anymore, and are forced to go out and work. People past retirement age deserve the right to relax after many hard years of working. It is an injustice to have these poor people return to the workforce.
ReplyDelete-Anita Pizzirani (Pizza)
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The government is the one to blame for the current job crisis. The government has done poor job recovering from 2007's "Great Recession" and there is no longer an adequate amount of jobs available for those looking for work. The first graph shows the decrease of Civilian Labor Force Participation rates after the turn of the century. The graph shows the sharp drop in participation rates that occurred after the recession. The second graph shows the Civilian Employment-Population ratio from about 1975 to the present. The graph basically shows the percentage of adult Americans who currently hold a job. Like the previous graph, the trend shows a decrease starting around the year 2000. The most prominent feature of this graph is the incredibly steep drop after 2007 leading to the lowest point in 30 years. However, as pointed out by the New York Fed, this graph is misleading because it does not account for the mass of retirees. The final graph line up the estimated employment-population ratio to the actual ratio of today in order to make a comparison of numbers. The difference between expected and current values differ by only 1.7%. This tells us that the rate is really where it should be. The reason people are working past retirement lies in the fact that people can simply not afford to retire. The weak economy has not allowed them to save up enough to financially support themselves.
ReplyDeleteBaby Boomer retirements account for only about 40 percent of job crisis since the recession. The remaining 60 percent is due to sluggish demand. The graphs show that the labor-force participation has been falling since the start of the 21st century, but really collapsed after the recession, to the lowest levels since 1978. It has seemed obvious that a big reason for the dizzying drop in the labor force was a weak recovery and a lack of good job opportunities.People are working past retirement because it is harder to retire than in the past when asset prices were high and rising.
ReplyDeleteBaby Boomers are to blame for the current job crisis. Because the next generation of workers cannot support them, they need to continue working, which paradoxically keeps the younger generation out of work. The graphs show that labor force participation is falling after it spiked in the late 90s. The current work force cannot support the retiring population. The only solution is to either increase the amount of workers in the current generation, or reduce the amount of retirees. The latter seems much more practical. It's not like they don't deserve it, they grew up in one of the best economies in the world and created a terrible one for us. The next graph demonstrates the same thing, we can't support all of the retirees. More of the Baby Boomers need to work past retirement. They think they can get away with destroying the economy and then leeching off the social security they take right from our paychecks, but that is only going to make the economy worse. If they continue to work, then at least they are contributing to the economy. The ones who retire are only making things worse. Obviously, my subtle recommendation to kill off the baby boomers was mostly sarcastic (read a Millennial Proposal if you want more on why and how this can be done). It's probably the most economically sound solution, but it's completely immoral. There doesn't seem to be a perfect solution to this crisis, so I recommend we all just wait this out and hope our generation can salvage the economy our parents destroyed.
ReplyDeleteThe government would be the one to point fingers at in causation or blame of the job crisis. Since the recession the labor force has had a weak recovery and a lack of job opportunities, which should have been created by the government. The Baby Boomer retirements only account for about 40 percent of the drop in labor participation. The first graph depicts the Civilian Labor Participation Rate from 1980 to 2010. It shows how the participation rate increased up until the recession where it started to decrease. The rate hasn't really been increasing recently, it shows it going downwards. The next graph shows the Civilian Employment Population Ratio, it increased and decreased. Most people are working past retirement because the money they've made hasn't and won't last all of their retirement time. They have jobs so why not try to make more money instead of retiring and not having enough. The people unfortunately have to work past retirement because they can't support themselves and would be better off.
ReplyDeleteI think Social Security has a lot to do with it. There are so many baby boomers that we have to pay for that we don't have enough money for ourselves. Social Security is suppose to work by paying for your future now but instead we are paying for the older generations and there are more of them than there are of us. We don't have enough money to support them so they are working longer to support themselves. Of course while they are in the job market past a normal retirement age, it is one less job that the younger generation can have and so the unemployment numbers go up higher. So Government using the money from social security for other things I believe is the cause of this. How the government spends their money is so out of wack.
ReplyDeleteThe government is the one to blame for the current job crisis. The first graph shows the decrease of Civilian Labor Force Participation rates at the beginning of the 21st century. There just isn’t enough jobs now to be provided to the working class where our government is mainly to blame. The second graph shows the Civilian Employment-Population ratio from the present all the way back to 1975. The graph shows the amount of adult Americans that actually hold a job. This graph is misleading though because it does not account for the massive number of retirees. The main reason why people work past their retirement is simply because in the past asset prices were high and growing. When the recession hit, instead of older people losing their jobs the younger workers did. So now the next generation are unable to get a job because of how the older workers cant retire because they still need to provide for themselves.
ReplyDeleteThe government is the one to blame for our societal job crisis as of right now. The graph shows when there were periods of recession, there was really bad unemployment rates. It shows how the participation rate increased up until the recession where it started to decrease. The second chart shows a worse perspective of the job crisis. Where a sharp decline in the employment to population ratio since the recession. More people are working past retirement because it is much harder to retire than in the past when the asset prices are high.
ReplyDeleteHmm…let’s see…
ReplyDeleteWho are we blaming today? Is it the “cruddy work ethic” and “laziness” of the other 99 percent of Americans, (right Mr. Sam Zell)? Or maybe it’s the arrogance and selfish acts of the wealthy one percent? Perhaps, it is the incompetence of our government in strengthening the recovery process and aiding in the formation of decent job opportunities. Recently, the Federal Reserve has come up with a new theory as to who is at fault for the job crisis. They seem to think it is the retiring Baby Boomers who are to blame.
However, the graphs tell a much different story; the first graph shows the decline of the labor-force participation since the start of the year 2000. The same graph illustrates the significant reduction of labor force after the recession; in fact suggesting it was at that time when it actually collapsed.
The second graph presents the Employment to Population Ratio, meaning, it depicts the percentage of American adults who are currently employed. The graph shows a collapse towards a 30-year low during the recession; a recession we have yet to recover from.
The third and final image is a side-by-side graph of the Employment to Population Ratio and the Estimated E/P Ratio. This graph depicts the current state of the job market. The graph displays the sad truth of the lacking job market, as it is much smaller than it should be.
Because of decline in asset prices, less people are able to retire, meaning they must keep working, even past retirement. In turn, this creates less jobs for the younger generation.
The debate over who is to blame for our current job crisis is just America’s pathetic way of stalling. In all honesty, I blame the American citizens, including government officials, for allowing it to go this far and get this bad. Ultimately though, playing the “Blame Game” isn’t going to solve the problem. So instead of fighting and pointing the finger at one another, perhaps we should work together and solve the issue at hand.
I believe that the current job crisis is to be blamed on the government. In the first graph, it shows the labor participation rate over time. As the graph shows, its highest peak was around 2000 and from then on, it has been slowly declining to what is now around 64%. Although a 4% drop may seem small, it has a great impact on the population as a whole. In the second graph, it shows the ratio between the currently employed to the entire population. The same trends occurs here too, the highest peak is around 2000 and then it starts to drop. The third graph shows the population ratio and the E/P ratio, this graph just shows how the current job is. People are being forced to work past the usual retirement age due to the increase in prices and not having enough money to pay. Even with the help of government aids and other welfare programs, it is simply not enough to live in with the current economic conditions.
ReplyDeleteOur current job market, and crisis is a mess, and our government is to blame. Also, the recent drop in the official unemployment rate is not a function of citizens searching for jobs, but an actual indicator of job market status. The labor force has been in a persistent slump and has been since the beginning of the 21st century. Also, people are now working past retirement because the cost of living has increased. More money is required to live some what comfortably now a days, than in comparison to 10 to20 years ago. The cost of living is increasing, while pay is relatively not. Resulting in more work to attempt to accumulate the same amount of pay.
ReplyDeleteIf there is anyone to blame for our current job crisis, it is the government. In the first graph you can see the labor-force participation falling since the start of the 21st century. It was at its worst when the recession hit. The second graph shows the percentage of adults working. When the recession hit, it collapsed and has yet to recover. And in the third graph, you can see the estimated amount of people employed against the actual amount of people employed. More people are now working past retirement because prices have increased and social security and welfare cannot cover the costs.
ReplyDeleteThe government is responsible for the job crisis. The graphs show the unemployment rates are terrible. in the first graph the rate has been fall since the 21st century began. In the second graph it shows how much the unemployment rate had fallen with sharp drops. The last graph shows how the amount of people employed at the moment are actually higher than expected. People have to work past retirement because if they don't they wont be able to survive with how the prices for things are going up they need an secure amount of money coming in.
ReplyDeleteWho gonna blame ? The Government ! (Like the Ghostbusters song lol) Its funny how the person who is should take the blame, always pushes it on someone else. indeed, some of the unemployment is related to retirement and dying off of the baby boomers but the recovery after the recession is the government's job to propel forward. It is true that some baby boomers have tired, and others cannot because of the increasing costs of living, which in turn takes jobs from the younger people. What is the government doing about that ? Right, nothing once again. It's effect after effect but it all stems from the lack of the government intervention. The first graph displays the continuous decline in participation of adults in the work force, especially after the recessions. The participation is the lowest as it has been for the last thirty years and there is no sign of improvement. The second graph takes into account the people who are not only unemployed but aren't necessarily a part of the work force, such as retirees. (This one looks scary) Something obviously happened during the recession to cause such a sharp decline in employment. The final graph compares the estimated decline of employment to the actual graph to show that more or less the economy is where it is predicted to be.
ReplyDeleteIt is clear that the government is responsible for the job, or shall I say lack of job, crisis. Each graph depicts the terrible unemployment rate caused by the government. The first shows the decreasing numbers of people in the workforce. The second gave a representation of how the unemployment had fallen with definite drops. The last graph exemplifies the fact that the predicted decline of unemployment is very easily true to the actual employment decline. And as prices have increased, social security and welfare fail to cover the costs, forcing retirees back into the workforce to be able to afford a doctor's visit.
ReplyDeleteThe government is definitely to blame for job crisis no doubt. The 2 reasons for the drop in the labor force was a weak recovery and a lack of good job opportunities. The crisis in the labor force like Krugman stated on a blog "What this does is in effect build the Lesser Depression into your definition of normal." The graph depicts the
ReplyDeletecollapse of the labor force since the Great Recession, basically showing how the number of people in the workforce has decreased over the years. The participation of people in the workforce is the lowest it has ever been for the last 30 some odd years and there seems to be no definite sign of improvement. The second graph shows the number of people that aren't counted as people in the workforce because they're retirees. The last graph demonstrates compares the estimated decrease in employment with the actual graph to show predictions.
The federal government is failing to do their job. One of Congress’ responsibilities is to create jobs to keep the economy going. As a result, there is a shortage of jobs to meet the need of the growing population. The lack of government regulation has led to 85 people to account for as much wealth as the lower 50%.
ReplyDeleteThe second graph shows the ratio of the number employed in the labor force to the total population (only including individuals in the working age. In the past thirty years, the charts shows the percentages of employment dropping to lows in 1982, 1991, 2002 and 2008; these were all periods of recession. Compared to economic predictions of unemployment over this time, the percentages for these were the same. Years prior to the recessions showed the actual employment was higher than the predicted employment. Krugman and Klein both stated that older people account for a greater part of the labor force than younger people. This is because the Baby Boomers are working longer and retiring at a later age, and with more experience, employers choose these individuals over the younger population. The growing population and the rise in the cost of living have meant that the Baby Boomers must wait to retire in order to support themselves.
The person to blame for the job crisis really is the government.It is the governments job to implement or bring out new jobs. Each graph depicts the falling labor-force participation from the baby boom era to now.The shrinkage of umemployed is due to all the \baby bloomers retiring after the Great Recession. With this information a lot of people are working after retirement because they will need the livable income in order to survive. So alot of retired people are working part time in order to gain that livable income.
ReplyDeleteThe current job crisis that’s gotten worse since the Great Recession seems to stem from a few things like the Government’s incompetence and the huge number of retiring baby boomers. According to the new study done by the Fed, the problem isn’t as bad as it seems baby boomers are a huge reason why things seem so bad as they do. The first graph shows us the decrease in participation of the labor force since the beginning of 2000. It shows the huge decrease of the labor force after the last recession. The second graph shows the employment to population ratio, the amount of adults in America who are employed now. There is a huge dip during the recession, the worst since 1978, meaning its effects are still impacting the job market today. The last graphs are the employment to population ratio and the estimated E/P ratio. It shows how the labor force is doing now, showing the disparity between where it is and where it should be. A huge part of the labor force today is people who are at the age of retirement, the baby boomer generation. Less and less of them are able to retire these days because of a decline in asset prices. They must keep working past retirement to support themselves. This means they take up more jobs that the younger people would otherwise have, More seniors make up the labor force over young people than in 2006. While the Fed thinks it did an okay job of covering up the problem under the guise of a huge baby boomer population, the weakness of the government still reflects in the terrible job markets.
ReplyDeleteThe increasingly worsening jobs crisis can be blamed on the government's efficiency, or rather, lacktherof. A lack of adequate job opportunities and the weak recovery from the recession are the main reasons this problem exists in the first place. The government needs to take a proactive stance and move towards alliviating the issues. It is simple to see from the first graph that the rate of the civilian labor force effort to search for jobs and work has decreased since the last recession. The second chart shows an even more dramatic perspective of the job crisis--a sharp decline in the employment-population ratio since the recession. The decline has been stabilized at a very low rate, with no sign of increasing any time soon. The third graph compares the estimated employment-population ratio to the actual ratio today. It demonstrates a 1.7% difference between the projected and actual ratios. It's ludicrous that a generation of people are receiving blame for these statistics and does nothing to show the back-end costs of the job crisis.
ReplyDelete