August 3, 2011

Employment Growth Continues to Paint a Dismal Picture

The private sector may have added more jobs than expected in the month of July, but last week’s GDP estimate continues to paint a dismal picture for employment growth.

There can be no meaningful growth in employment so long as consumer spending is weak or falling, there is a serious mismatch between worker skills and skills desired for jobs that are available, and the construction sector is dormant. We are in a period now where we are experiencing all three of these problems.

Currently, there are rising job openings and rising unemployment, which means that it is challenging for employers to find qualified workers for the jobs they seek to fill. There is no quick solution to the problem.

If the government wants to improve the climate for job creation, it can keep taxes low and be mindful of the regulatory burden on businesses. Additionally, Washington should avoid generating a climate of crisis that causes the average person to be fearful about losing jobs, paying bills, and having money with value and be ashamed of and disgusted with the political scene.