Why faltering recovery in U.S. employment

 According to the U.S. Department of Labor
latest report, last December the U.S. unemployment rate was 9.4%, which means about 14.5 million Americans did not work. U.S. economy has embarked on the road to recovery, first to the third quarter of 2010, the U.S. GDP growth rates were 3.7%, 1.7% and 2.5%, why the unemployment rate down so slowly? A clear understanding of the U.S. employment situation, help us to correctly judge the U.S. economy.

Typically, the deteriorating economic situation, companies first consider the dismissal, and when the economy improves, companies are re-employ staff costs. Therefore, enterprises would prefer to increase the serving staff remuneration, if labor is fully utilized, labor productivity growth in output growth simultaneously, companies to expand production to increase output only by new employees, the unemployment rate will decline. This means that fluctuations in the unemployment rate lagged behind other economic activity. As the U.S. economy is still in recovery trend, so it difficult to drop the unemployment rate. Of course, the long term, real economic growth and the unemployment rate was fairly stable between the relationships. This is the famous However, even enough to create employment, promote economic growth decline in unemployment in the job market, there are still structural unemployment, that is, labor supply and demand mismatch caused by unemployment.

years ago, part of the shares is expected to soar! Confidential! Market institutions will soon be reversed capital flows have changed dramatically! Main layout
money is plotting a new U.S. financial, information technology leads the world, but so far the U.S. manufacturing industry remains the world's largest share of U.S. exports in 2008 accounted for 69%. Only in the economic globalization and technological progress in the context of the past 10 years, U.S. manufacturing employment in a net decrease of 5.6 million. 1992 to 2000, manufacturing workers over the number of bachelor's degree increased from 84 million to 100 million since 2000, this number continued to increase. Since 1992, U.S. manufacturing employment in the proportion of highly educated more and more, rather than the skilled labor force in 2000 to 2009 decreased 670 million. Since 1987, U.S. manufacturing productivity has doubled the productivity of U.S. manufacturing in 2010 than in 2000 increased by 38%. U.S. financial crisis has not changed the trend of U.S. manufacturing productivity. According to the U.S. Bureau of Labor Statistics, employment in U.S. manufacturing in 2007 nearly 13,880,000 in 2008 to 13,430,000 in 2009 to 11.97 million, in October 2010 was 11.73 million, created by the manufacturing sector GDP, 2007 16,170 years billion in 2008 to $ 1,637,000,000,000. February 2009 the United States began implementing the Therefore, weak manufacturing employment, the unemployment rate was down, how can drop it?

U.S. unemployment rate remains high, there is one important reason is to The United States in the context of Job Creation, is the creation of jobs. The economic downturn is indeed a very high rate of unemployment, but only a recession can not explain certain phenomena of the U.S. economy. U.S. economy to create jobs and loss of employment coexist, as long as job creation is greater than loss of employment, the unemployment rate will not rise. But the United States from 2008 to 2009 first quarter, second quarter, the number of job creation was 4025 million, the number of jobs lost was 48.15 million, adding the number of unemployed was 7.9 million net. Weakness in job creation behind, business investment and business confidence is weakening. Financial crisis hit the U.S. financial institutions, and reconstruction of deleveraging in the context of the balance sheet, business is difficult to obtain funding from financial institutions to support. U.S. government spending to stimulate the economy by increasing business investment and squeeze, which in economics is called The recession worsened crowding-out effect, so that investors choose more government bonds, are reluctant to invest to the enterprise.

service sector employment accounted for 80% of total U.S. employment. The continuous development of information technology and globalization, many companies principally engaged in certain business separate from, and are outsourcing. Brand American economist had predicted in 2006, the United States over the next 20 years due to outsourcing of services may cause 4,000 people lose their jobs. India and other emerging economies to actively contract the services of outsourcing, from 2001 to 2008 U.S. imports from India's service sector average annual growth rate of 31%. Of course, globalization, and must lead to a reduction in employment, if the developing countries continue to develop the economy will increase demand for U.S. services sector. However, in the context of the financial crisis, U.S. financial institutions collapse, the real estate market slump, a result of transportation of goods production, and many depression caused a decline in service sector employment decreased. With the U.S. economic recovery, including the financial services industry, including employment only under the premise of the recovery in the industry gradually increase employment. According to December 3, 2010 U.S. Labor Department data, since from September 2009, professional services and business services, temporary support services increased by 49 million, In addition, health care, social assistance, employment services and construction are on the rise. However, due to financial difficulties the U.S. government led to the decline in the number of employees in government departments, resulting in an increase in employment in the service sector, while the unemployment rate remained at high levels.

visible improvement in the employment situation of both the U.S. short-term factors and long-term factors, in accordance with current U.S. employment recovery, the United States will be gradually restored in a few years the economic crisis in this 800 million people unemployed employment.