Mar
24
Blog Post 8
March 24, 2015 | Leave a Comment
The disproportionate ratio of job availability to job seekers is creating a detrimental atmosphere. To be stuck in that situation is unimaginable to me. It takes unwavering willpower and tremendous luck to finally leave this deep hole. Plus, the obstacles of finances and emotional stress will impede many moves. Will the market resolve itself or does politics need to step in? Desperate times call for desperate measures.
Wolcott’s article in The CEPR did not persuade me of his argument. He suggested that the minimum wage increase for the selected states is correlated with an average change in employment of +0.99% versus the rest of state’s employment experiencing +0.68%. This study is very incomplete and does not accurately represent increase in employment due to many unaccounted factors. One flaw is the lack of background information pertaining the states. Different state economies vary drastically, so the environment or development of a particular state could affect results. Another flaw is the sampling size. 13 states represent a small portion of the United States. While it is true that the data taken was unbiased, it’s important to also note how the states all follow a similar trend. It doesn’t seem as though only states with a raise in minimum wage dominated the top percentage change in employment.
The article on the U.S. Conference of Mayors has a lot of information, but lacks the most important detail. What specific proposals do the Mayors have to combat this situation? They say that the Mayor’s Task Force will address income inequality, promote economic mobility and create jobs in American cities. I’m absolutely sure these proposals have come up in some way or form before. Yet the problem still exists. Their vision to improve housing, transportation, expanded employment opportunities is correct, but the financial implications will most certainly hold them down. As quick search already shows a struggle to upkeep a federal transportation funding measure. I’m skeptical that the Task Force will be any different, but I wish my skepticism would be disproven.
The NYTimes article by Schwartz reminds me of a fact I learned back in high school. The unemployment rate actually discounts discouraged workers. Hence, the lower unemployment rate does not actually mean that fewer people are unemployed; some people have simply given up. I was surprised to read that labor participation rate was only 62.8% and that nearly 3 million workers between the ages of 25 to 54 dropped out of the labor market. I agree with Schwartz as he discusses how the changes in time are affecting current working conditions. With fewer jobs available and, in my opinion, oversaturation of people looking for work, I think people have to turn elsewhere. Many graduates are trapped and unable to find work. They may have to steer clear of the common professional career routes to more niche fields.
With the rapid advancement in technology, I wonder what the future holds for the job market. In five to ten years, automation could replace many more jobs. Factories could definitely be completely replaced with machines. I heard some parts of accounting could be automated, too. Computer science could take the crown and “lesser” roles could be outsourced. How would this affect those without the skillset? And how will the United States or New York change because of that?
-Jia Jun (Jay) Wu
