Tag Archives: Unemployment

Message to Students: Finish that College Degree!

Much has been made of the gap in outcomes between those with a bachelor’s degree or higher and those with a high school education or less. The unemployment rate among the former group is just 2.6 percent, compared to 5.4 percent for the latter group. Young adult bachelor’s degree holders can expect to earn $24,600 more per year than their counterparts with only a high school degree.

But what about the people in between? Often in economic statistics, these people are lumped into one category, labeled “some college.” But this grouping captures two separate groups of people: those who have completed a two-year associate’s degree, and those who have taken college classes but have not emerged with any credential at all. And recent evidence suggests that the fortunes of these two groups are diverging. Policymakers should look for ways to get students to complete their four-year degrees, or embark on associate’s degrees, which are easier to finish.

Read the rest on Economics 21, here.

Why Trump is Wrong on Trade and Immigration

Donald Trump claims he’ll “make America great again.” He claims that free trade and immigration have lead to widespread job losses and economic turmoil for Americans. These are the signature policies of his campaign, but the evidence just doesn’t support this view.

Americans rely on the benefits of trade everyday of their lives. The importation of low-cost goods drastically increases the purchasing power and lowers the cost of living for all Americans.

This is especially beneficial for the poor, who, according to the economists at the Center for Economic and Policy Research, gain 63 percent of their purchasing power from low cost imports. The prices of the goods consumed by the poor fall more than goods consumed by the wealthy. Imposing high tariffs on these goods would have devastating effects on their ability to survive.

Read the rest on the PanAm Post, here.

Long-Term Unemployed Still Recovering from Recession

Friday’s jobs report from the Bureau of Labor Statistics, at long last, contained some good news. The labor force participation rate, long a laggard of the economic recovery, finally cracked 63 percent.

The labor force participation rate, the share of people either working or seeking employment, was 66 percent before the recession, and bottomed out at 62 percent last year. As the labor market gets tighter, wage growth has started to pick up as well. While the unemployment rate did tick up by a tenth of a percentage point, that is likely good news if it means more people have started actively looking for jobs, rather than staying out of the labor force entirely.

Read the rest on Economics 21, here.