Bloomberg (March 17)
“Even with the dollar’s rally since 2014, U.S. manufacturing is benefiting from the world’s strongest rate of productivity, a flexible labor market, cheap energy and from having a big domestic market.” The lingering belief that it’s radically cheaper to move production to China is a misconception. “Labor costs adjusted for productivity in China are only 4 percent cheaper than in the U.S.”
Tags: China, Dollar, Energy, Flexible, Labor market, Manufacturing, Productivity, Rally, U.S.
New York Times (January 12)
“Hands down, 2014 was the best year for the labor market since the Great Recession hit in late 2007.” Nevertheless, the “recent progress does not so much point a way forward as highlight weaknesses that need to be corrected and risks that need to be avoided in order not to backslide.” Job growth has yet to catch up with population growth, and continues to be concentrated in the lowest paying areas.
Tags: 2014, Backslide, Great Recession, Job growth, Labor market, Pay, Population, U.S.
The Economist (January 25, 2014)
“In some ways, China’s market is still the world’s most enticing. Although it accounts for only around 8% of private consumption in the world, it contributed more than any other country to the growth of consumption in 2011-13.” But China is proving vexing to foreign firms as they find themselves subject to government whims, strong local competition, a tighter labor market and slowing growth. Some are scaling down. Others stumbling or even pulling out. “China is still a rich prize. Firms that can boost productivity, improve governance and respond to local tastes can still prosper. But the golden years are over.”
Tags: China, Competition, Consumption, Enticing, Foreign firms, Golden years, Governance, Government, Growth, Labor market, Productivity, Slowing
New York Times (June 16)
“The biggest problem in the labor market is not a skills shortage; rather, it is a persistently weak economy where businesses do not have sufficient demand to justify adding employees.” There is no shortage of skilled workers, but businesses haven’t been trying very hard to recruit them. Recruiting intensity “has been low in this recovery. Employers may be posting openings, but they are not trying all that hard to fill them, say, by increasing job ads or offering better pay packages.”
