It Isn’t a Jobless Recovery…
…if it’s a recovery at all…it’s a “Jobs lost” one.
Only 58.4 percent of Americans are employed, the fewest since the 1980s. Corporations have recouped 100 percent of profits lost in the recession. GDP has regained its pre-recession level with 7.3 million fewer workers.
I think baby-boomers leaving the workforce at least partially accounts for the first number. Regardless, companies aren’t going to add jobs back “just because.” They will only do so if the growth justifies it. Instead, during this recession, companies learned that fewer workers can do the same work (or more) as before.
It’s easy to criticize corporations for raking in profits while millions of workers go unemployed or underemployed. However, the bottom line is that companies have adapted to the changing structure of the U.S. and global economies a lot faster than the American workforce has, and a great number of those workers have a lot of catching up to do.
Companies have adapted and streamlined and become profitable at current employment levels.
The push to bolster profitability has permanently altered the employment needs of many corporations, especially the mix of skills companies require. “We believe a large proportion of today’s high unemployment is structural in nature, resulting from a huge skill mismatch between the jobs being created and the existing skill sets of jobseekers,” says Wells Fargo economist Mark Vitner.
In other words, as the aforelinked article is titled, “some jobs are never coming back.” Now workers have to adapt or be left behind, never to recover.