Income Inequality — Why Workers Aren’t Getting Ahead

By Windriven

Recovery from the Great Recession has been slow and uneven. Six years in and U3 unemployment is finally down to 5.4%, U6 has dipped below 11%. Why are there so few voices claiming victory and why do their claims ring a bit hollow?

This chart from the Federal Reserve provides a clue. It plots labor’s share – salary and wages – of Gross Domestic Product.

wages vs GDP

In the postwar years the American economy was doing well. As the chart above shows, American workers’ share of GDP taken as wages and salaries was about 50% in those years. That began to change in the early 70s and today the share of GDP taken as wages and salaries is less than 43%. Productivity continued to rise. GDP continued to grow. But workers were getting a progressively smaller piece of [Continue reading]

BLS Releases Unemployment Rates for April

The U.S. Bureau of Labor Statistics released the Employment and Unemployment rates for the month of April 2015 on Friday May 8th.  The commonly quoted Seasonally Adjusted U-3 Unemployment rate was 5.4% down slightly from 5.5% in both February and March.

The unadjusted U3 was 5.1% while the broader unadjusted U6 [Continue reading]

Is the Government Fudging Unemployment Numbers?

BLS_vs_Gallup_Unemployment_2_Mar2015

What is the True Unemployment Rate? Comparing Bureau of Labor Statistics numbers to an Independent Source There has been a lot of talk about the validity of the government generated unemployment numbers created by the U.S. Bureau of Labor … [Continue reading]

Should The U.S. Worry About Oil Sector Jobs?

ID-100324447

Outside of individual's holding oil stocks, damage to the economy from the fall in oil has been pretty minimal so far. Indeed, the price cut in home heating oil and gasoline has probably outweighed the damage from lower oil prices… so far. … [Continue reading]

March 2015 Unemployment Flat

BLS_vs_Gallup_Unemployment_2_Mar2015

The U.S. Bureau of Labor Statistics (BLS) released the March Unemployment figures on Friday April 3rd. According to the BLS the Current Unemployment Rate (Seasonally adjusted) for March was 5.5% unchanged from February. The Unadjusted Unemployment … [Continue reading]

Building Your Own Business

Business Idea

Whenever the unemployment rate climbs people begin to get desperate and many think that this may be the time to strike out on their own (since they can't find a job anyway). Unfortunately, a time when even experienced businesses are struggling and … [Continue reading]

100,000 Layoffs and Counting: Is this the New Normal?

Oil Jobs

This time a year ago, the oil industry's biggest problem was finding a way to deal with the "retirement tsunami" about to crash down on it as older oilfield workers hung up their cork boots to enjoy freedom-55. Now, with oil prices still in the … [Continue reading]

BLS Releases February Unemployment Numbers

Employment February 2015

The U.S. Bureau of Labor Statistics (BLS) released the February Unemployment figures on Friday March 6th. According to the BLS the Current Unemployment Rate (Seasonally adjusted) for February was 5.5% down from 5.7% in January. Along the same lines … [Continue reading]

The Big Lie – Part 2

LaborForceParticipation

Last week we published an article titled Gallup Head Says Unemployment Rate is “A Big Lie” in it we said that, the big news is that Jim Clifton the CEO of Gallup said that unemployment is really closer to 9%. Here’s what he said: There’s no other … [Continue reading]

Gallup Head Says Unemployment Rate is “A Big Lie”

The U.S. Bureau of Labor Statistics (BLS) released the Unemployment rate for January 2015 today. Adjusted U-3 unemployment rose "insignificantly" from 5.6% to 5.7%. Unadjusted unemployment rose more significantly from 5.4% in December to 6.1% in … [Continue reading]