Tag Archives: employment

Michigan’s Economy

I have come to wonder, particularly since the recent recession,  of  what is lacking or better what needs to be done in Michigan to cushion some of the up and downs of the Auto industry and the inevitable reductions in employment created by ever increasing automation incorporated by large manufacturing corporations.

I have made the following observations:

1)    We have in recent years entered a new economy, one whose core is fundamentally different from its predecessor’s, say the automobile age was from the agricultural era.

2)    The economy is barely chugging along and there is apprehension about employment levels . . .

The reality we have is very troubling, because what is disappearing is not just certain number of jobs or jobs in certain industries, or even jobs in America. What is disappearing is the very thing itself: The Job. The job is becoming a vanishing species an antiquated notion of employment.

3)    Nationally the manufacturing sector is employing an ever decreasing percentage of total labor; currently I believe at 11%.

4)    The civil service, etc employs approximately another 20%.

5)    Unemployment is at 9.1%

6)    Therefore approximately 60% must be working in other sectors of the economy.

Now what do these observations tell me, a non-economist?

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August Jobs Report is Discouraging

H. Nejat Seyhun, contributing writer to The BusinessThinker magazine, is the Jerome B. & Eilene M. York Professor of Business Administration and professor of finance, Ross School of Business, University of Michigan. He is an internationally recognized authority on financial issues and Derivatives.

The Bureau of Labor Statistics announced last Friday that on a seasonally adjusted basis, total private employment increased by 154,000 while the overall total nonfarm employment increased by 117,000 in July (expectations were for an increase of 75,000).   Similarly, the overall unemployment rate went down to 9.1% from 9.2%.  Expectations were for no change from June.  Since both figures were better than expected, the stock market increased by about 150 points inreaction prior to the opening bell.

On closer inspection, however, there is a lot not to like in the August report.  First, the civilian non-institutional population increased by 182,000 from June to July, while the overall number of employed actually went down by 38,000.  Since the overall working-age population growth has been about 1.8 million over the past year, the economy on average needs to add about 140,000 new jobs to prevent the unemployment rate from increasing.  The net additional payroll figure of 117,000 increase is certainly not satisfactory from this perspective.

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THE FAILURE OF THE PRIVATE SECTOR IN GREECE

Dr. Periklis Gogas is an invited contributor to The Business Thinker magazine. He is a faculty member at Democritus University of Thrace, Greece, teaching Macroeconomics, Banking and Finance

For many years now in Greece, even before the recent fiscal crisis, the public sector and the government employees were targeted by Greek national media and the public as the source of many problems that clouded the country’s future. At the center of the debate there is always the myth of the “high” salaries paid in the public sector, the constitutional provision for the permanence of public servants and their alleged low productivity.  At the same time, many young people in Greece have as a career objective to work for the public sector. Continue reading THE FAILURE OF THE PRIVATE SECTOR IN GREECE