economy

The American Labor Market: Fact vs. Fiction

May 18, 2024 by JacobSwartz

By Jacob Swartz

When we consider markets, we typically think of commerce – the buying and selling of goods and services, international trade, investing, supply and demand. Markets are the backbone of our economy. Almost everything has a market – food, medical care, toys, films and entertainment, weapons, drugs, stocks. But there is one market that surpasses them all in importance, without which no other market could exist – the labor market.

Labor is crucial for commerce. Without people to produce goods and services, commerce would cease to exist. Businesses rely on labor to function, creating a demand similar to that for material goods and services. In other words, the labor market is the foundation on which all other markets depend.

In an age where everyone feels the need to have an opinion on just about everything, many people consider themselves “economic experts.” However, when everyone has an opinion on a complex issue, most of those opinions are bound to be wrong. Economics is a prime example of this, filled with false consensuses. With that in mind, let’s go ahead and debunk some common myths about the history of the American labor market, from the Industrial Revolution to the present. [Read more…] about The American Labor Market: Fact vs. Fiction

Here’s Why “Strong Jobs” Don’t Mean “Higher Stocks”

October 9, 2018 by Elliott Wave International

The stock market leads the economy, not the other way around

By Elliott Wave International

It’s a wonderful thing when jobs are added to the U.S. economy.

But, as far as investing goes, history shows that you should not bet your stock market portfolio on it. Conversely, even a series of weak jobs reports doesn’t mean you should bet against stocks.

This is worth mentioning because many pundits believe big economic factors like jobs determine the stock market’s trend.

Consider this from CNN Money:

Solid corporate earnings coupled with continued demand for new technology bode well for the major U.S. stock indexes. So do expectations of a buoyant economy at home and a recovering one overseas. [emphasis added]

When do you think this article was published?

Well, it’s hard to tell because the narrative could fit different timeframes in recent history. Plus, correlating strong earnings and the economy with gains in stocks is all too common.

That article was published on Dec. 31, 1999 — just two weeks before the DJIA hit a milestone high and then went on to shed nearly 40% of its value through October 2002. [Read more…] about Here’s Why “Strong Jobs” Don’t Mean “Higher Stocks”

The Internet: An Economic Ecosystem for Exciting Job Growth

August 8, 2013 by Guest Contributor

An enormous amount of money changes hands online every day… The Internet plays host to a huge variety of economic activity, from online purchases to electronic banking. Until recently, the economic impact and potential of the Internet had not been studied much. However, in 2011, a new report from the McKinsey Global Institute revealed just how big a role the Internet plays in economies around the world.

The McKinsey research looked at the impact of the Internet on the G-8 nations of Canada, France, Germany, Italy, Japan, Russia, and the UK and US plus some emerging nations, including Brazil, China, South Korea and India.

The findings of the report were surprising. Although it had been clear that online activities contribute economically to most countries’ GDP, the extent of the Internet’s economic value was revealed to be much greater than predicted. The average contribution made by the Internet to a country’s GDP was 3.4 percent. To put this result into perspective, online economic activity now makes up a larger portion of total GDP than the energy sector or agriculture.

Internet Creates Jobs

The other big finding from the McKinsey report is that the economic impact of the Internet is [Read more…] about The Internet: An Economic Ecosystem for Exciting Job Growth

A New Record for Unemployment

July 7, 2009 by Tim McMahon

The non-farm payrolls figure for March was bad. The economy lost another 663,000 jobs that month. This brought the total jobs lost in the first quarter of 2009 to almost 2 million. Compare that to all of 2008, where “only” just over 3 million jobs were lost all of that year.

At the rate of 2 million a quarter, we would lose 8 million a year… more than 2 ½ times as much as in 2008. This current loss resulted in the unemployment rate rising to 8.5%, the highest reading since late 1983.

The numbers aren’t in yet for April, but another 600k+ jobs are expected to be lost. This would be the 16th straight month of job losses. The record stands at 17 and at this point, it doesn’t look like we have any choice but to break the record.