Tag Archive for Jobs

Guest Post: The Economics Of Social Democracy

This guest post is authored by noted US/UK political economist and friend of CPEG John Weeks. Weeks is an economist and Professor Emeritus at SOAS, University of London. This article is a cross-post from the European Social Journal website.

In a recent article in the Social Europe Journal, Shayn McCallum develops in some detail his interpretation of the “political economy” of social democracy. Central to his approach is the work of Karl Polanyi, and specially the famous Chapter 6 of The Great Transformation, “The Self-regulating Market and the Fictitious Commodities: Labor, Land, and Money”. This chapter, obviously influenced by Karl Marx who is not cited, provides the basis for developing the “economics” of social democracy.

I specifically seek to distinguish the economic policy framework of social democracy from that of “liberalism” as that term is used in the United States (for a longer discussion see Chapter 10 of my new book, The Economics of the 1%). US-style Liberalism under different names has characterized the policies of the left of center parties in most of Western Europe.

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Commentary on the December 2013 BLS Jobs Report

The theme of this month’s jobs report ought to be ‘not enough.’ The latest disappointing numbers are far lower than the optimistic expectations voiced by many economists after ADP reported payroll growth of 238,000 in December 2013. CPEG has been arguing for years that what job growth the U.S. economy has seen since the official end of the ‘great recession’ has been inadequate. In fact, the total number of employed workers in the U.S. is still lower than it was before the start of the great recession. The Bureau of Labor Statistics announced this morning that the economy added 74,000 jobs in December 2013, falling far short of expectations. This anemic job growth brings the total employment in the country to less than what it was in November 2007, the month before the great recession started. It’s important to note that if the economy had added the 200,000+ jobs that many expected, we would still not have reached pre-recession employment levels. Even a ‘good’ jobs report would have been disappointing.

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Commentary on the November 2013 BLS Jobs Report

The markets – Dow is up more than 150 points – and the media – “economy set to add most jobs since 2005” – liked today’s jobs report: 203,000 jobs created in November 2013. And, of course, we should be glad over 200,000 people had jobs in November who didn’t have them in October. But does this mean that the economy is up and running for us? Perhaps the best way to answer that question is to take three dates: Nov 2007, the last month before what has been labeled the “great recession,” June 2009, the official end of the “great recession”, and today and look at the job numbers. The table below provides that comparison (all numbers in 000s, population and labor force are people 16 and over, seasonally adjusted).

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Commentary on the October 2013 BLS Jobs Report

Though payroll jobs (establishment survey) increased by 204,000 in October, overall employment (household survey) declined by 735,000, indicating that the U.S. employment situation remains dismal. More telling, long-term employment (of 27 weeks or more) remains at 4.1 million, approximately double the level of prior recessions. The Official Unemployment rate also remained essentially unchanged, increasing slightly from 7.2% to 7.3%. The more accurate U-6 unemployment rate which takes into account discouraged workers and workers working part-time who would like full-time work also rose from 13.6% to 13.8% in October.

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Commentary on the September 2013 BLS Jobs Report

The Bureau of Labor Statistics issued the September Employment Situation report on Oct. 22. This came 18 days after the scheduled Oct. 4 release because of the 15 day government shutdown. As expected, the September report portrays a stagnant economy, creating jobs barely at a pace commensurate with population growth and far from a rate that would reflect an economy on the road to recovery.

Nonfarm employment increased by all of 148,000 jobs, a smidge below the 150,000 or so jobs commonly believed are needed to keep pace with population growth. This rate was half of the 300,000 new jobs that should be created monthly in an economy working its way out of the doldrums. Unchanged was the number of Americans working part time who otherwise desire fulltime work. There are 7.9 million of these workers.

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