Enough jobs for everyone?

By Robert Romano via netrightdaily.com   Article

Is the era of economic growth ending?

“The average annual growth from 2006 to 2015 was 1.41 percent, the worst decade since the Great Depression. U.S. 10-year treasuries stand at just 1.75 percent. The consumer price index only increased 0.7 percent in 2015.

The working age population in the U.S. has certainly been slowing, and will be growing at an even slower pace for the next few decades.

The labor force participation rate for 16- to 64-year-olds has not been faring much better, according to data compiled by the Bureau of Labor Statistics. It peaked in 1997 at 77.37 percent and has dropped to 72.61 percent in 2015, accounting for 9.7 million people who otherwise might have been in the labor force since then but are not.

Note that excludes those of retirement age, correcting for drops in labor participation associated with Baby Boomers retiring. Yes, that has reduced the participation rate some, but so has the working age population exodus from the work force too.

What emerges is a spiral of slower growth, less asset price appreciation, lower interest rates and fewer jobs. … Is the era of growth ending? Never mind the degrowth movement. …

What is most alarming, however, may be the declines the U.S. is seeing in labor participation. Slower growth might be seen as a benign indicator if it still proportionately produced the same number of jobs.

But it is not, with the 16- to 64-year-old labor participation rate dropping to levels not seen since 1981 when women were still entering the work force. Slower growth has been toxic.

All this, after the U.S. has invested hundreds of billions of dollars in college educations with students with tens of thousands of dollars of debt predicated on the idea that there would be enough jobs for everyone. Well, there aren’t, every year it keeps getting worse and we need to start asking ourselves why.”

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