Tuesday, November 25, 2008

What is the new job market?

This article at Time business on line supports what I’ve been claiming for some time. That jobs lost now are not being replaced with new jobs at the same pay rates.

Studebaker built carriages and his sons built automobiles. That’s the way it worked in the past, the workers who built carriages became the workers who built cars. Now those jobs aren’t shifting industries as demand changes, those jobs are disappearing to cheaper labor countries with no replacement job where the job was lost.

The next big government failure is tracking workers. Only the government could create a system that says a worker who lost a $45,000 a year job and took a $35,000 a year job is still employed. The truth is they are underemployed. And not identifying that in your job statistics is a big part in why the experts were surprised by the current economic crisis. This failure is also why so many politicians kept saying “the economy is fundamentally strong” long after it became obvious to the people on the street that something important was going wrong.

This failure to measure the right things and to publish the information in a timely manner is a big part of the crisis, people without information or with incomplete information make bad choices.

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