Jobs created in North America.

[Swamp Fox]

Lou Dobbs, eat your heart out.

http://www.theglobeandmail.com/servlet/story/RTGAM.20050804.wkent0804/BNStory/National/

The US created 207,000 non-farm jobs, though the unemployment rate remained at 5%. BTW, if you didn't know, if the job creation rate rose at 5% and the total work force rose at 5%, the unemployment rate would be the same. The question is if 207,000 jobs is a high number, low number, or just right.

July's jobs numbers beat expectations. Economists polled by Bloomberg News had expected 180,000 new non-agricultural jobs in July.

Best of all ...

Workers' average hourly earnings rose to $16.13 in July. That was 0.4 per cent more than the average in June of $16.07. The increase was the most in a year.

With this good news, I'm sure you New Yawkers are anxious to know what's happening in Canada, the land of the igloos, so I'll say that we did create jobs, though not as much as expected.

http://www.theglobeandmail.com/servlet/story/RTGAM.20050805.wjobless0805/BNStory/Business/

That said, it is true that what some people are feeling is true. Wages are sticky downwards, which mean that people will not accept a cut in wages, preferring to take a loss as inflation cuts into their real income. But


They note that something extremely odd occurred in the U.S. economy last year: Average compensation, including pay and benefits, fell. That is a rare event; the last time it happened was 14 years ago. More important, it usually happens in or around recessions or when productivity is going nowhere. But last year wasn’t like that. Productivity rose. The economy grew. The unemployment rate was low and falling. Every indicator pointed to strong wage increases, but just the opposite happened. Now some of the nation’s most eminent economists, including professor Richard B. Freeman of Harvard and Stephen Roach of Morgan Stanley, believe the supply of overseas workers in newly globalizing labor markets is holding U.S. pay down and will do so for years.

http://www.fortune.com/fortune/articles/0,15114,1081269-3,00.html

I know how painful that is, because the reduction of wages is extremely hard on people, which is not captured in statistics. I can't find the article now, but I remember reading that Americans would accept globalization if there are programs in place to help them adjust and not reduce their incomes. That's fair, and that's what governments should do.

Comments?

[ethics]

Yes, I don't feel the economic boom. I don't see gloom and doom, mind you, but I just see the same amount looking for jobs around here. Companies are still not hiring. *shrug*.

[Coot]

Wonder how many of those jobs *created* were construction jobs utilizing illegal labor.

[Steve]

Probably none, since the labor statistics are garnered from payroll information. Theoretically, I suppose there could be some employers hiring illegal employees but collecting payroll taxes and remitting them.

Unless you mean illegal labor, as in working with forged documents, in which case all bets are off ;)

[Techie2000]

I don't think any sane worker is going to willingly take a pay cut in the name of "fighting inflation." If I'm "fighting inflation" then the rest of the country better be doing their part too!

[Coot]

Unless you mean illegal labor, as in working with forged documents, in which case all bets are off ;)

Precisely. A significant number of construction workers here are illegals, working with forged docs. Lots of building going on here right now. ;)

[ravital]

...I remember reading that Americans would accept globalization if there are programs in place to help them adjust and not reduce their incomes. That's fair, and that's what governments should do.


Do you by any chance recall anything about the specifics, like what kind of programs were discussed, and how governments could accomplish this? I too would like to hear more on this. Thanks.

[Swamp Fox]

No details were given - it was just a poll, and people were asked a simple question.