Janet Yellen millennials a mystery, Citizen Wells schools Yellen, Student debt and jobs, Influx of illegals impacting job market, 75 percent of Obama jobs went to Hispanics Latinos, High unemployment rates for young Americans
“Of the approx. 6 million new employments since Obama took office in January 2009, 4,511,000, 75 percent, were Hispanic/Latino!”…Citizen Wells
“In today’s labor market, there are nearly 1 million “missing” young workers—potential workers who are neither employed nor actively seeking work (and are thus not counted in the unemployment rate) because job opportunities remain so scarce. If these missing workers were in the labor market looking for work, the unemployment rate of workers under age 25 would be 18.1 percent instead of 14.5 percent.”…Economic Policy Institute May 1, 2014
“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″
Janet Yellen testified before congress today, February 24, 2015.
“Current Economic Situation and Outlook
Since my appearance before this Committee last July, the employment situation in the United States has been improving along many dimensions. The unemployment rate now stands at 5.7 percent, down from just over 6 percent last summer and from 10 percent at its peak in late 2009. The average pace of monthly job gains picked up from about 240,000 per month during the first half of last year to 280,000 per month during the second half, and employment rose 260,000 in January. In addition, long-term unemployment has declined substantially, fewer workers are reporting that they can find only part-time work when they would prefer full-time employment, and the pace of quits–often regarded as a barometer of worker confidence in labor market opportunities–has recovered nearly to its pre-recession level. However, the labor force participation rate is lower than most estimates of its trend, and wage growth remains sluggish, suggesting that some cyclical weakness persists. In short, considerable progress has been achieved in the recovery of the labor market, though room for further improvement remains.
At the same time that the labor market situation has improved, domestic spending and production have been increasing at a solid rate. Real gross domestic product (GDP) is now estimated to have increased at a 3-3/4 percent annual rate during the second half of last year. While GDP growth is not anticipated to be sustained at that pace, it is expected to be strong enough to result in a further gradual decline in the unemployment rate. Consumer spending has been lifted by the improvement in the labor market as well as by the increase in household purchasing power resulting from the sharp drop in oil prices. However, housing construction continues to lag; activity remains well below levels we judge could be supported in the longer run by population growth and the likely rate of household formation.”
From CNN February 24, 2015.
“Janet Yellen: Millennials are a mystery”
“Millennials are a bit of a mystery to Janet Yellen.
The head of the U.S. Federal Reserve said Tuesday that the behavior of millennials — which typically refers to a generation of people born in the 80s and 90s — has top economists scratching their heads.
“I think we’re just beginning to understand how the millennials are behaving,” Yellen said before the Senate Banking Committee. “They’re certainly waiting longer to buy houses; to get married. They have a lot of student debt. They seem quite worried about housing as an investment. They’ve had a tough time in the job market.”
As the economy continues to gain strength, Yellen said she expects more millennials to buy homes and start families. “But,” she quipped, “we’ve yet to really see how this is going to affect that generation.””
“top economists scratching their heads.”
Janet Yellen apparently does not have a firm grasp of the impact of the economy on millennials.
Chief economist at Goldman Sachs, Jan Hatzius must not either.
Several weeks ago I corrected his statement about baby boomers impacting the drop in the percent of the population employed.
The problem with the percent of population employed is the increase of people over 16 in this country.
The US Labor Dept. states that we have approx. 15.5 million more since January 2009.
Those turning 16 each year netted by those dying adds approx. 1.5 million a year which totals 9 million since 2009.
From The Daily Caller February 23, 2015.
“But Obama has used his power over the immigration agencies to minimize enforcement of immigration laws. Since 2009, Obama’s senior deputies have repeatedly instructed his immigration agencies to reduce enforcement of immigration laws. For example, since 2009, his aides have given work-permits and temporary residency to 4.7 million migrants, including illegal immigrants, tourists, guest-workers and students.
That 4.7 million is in addition to the annual inflow of 1 million legal immigrants. Roughly 4 million American youths enter the workforce each year.”
So, there you have it.
At least 9 million native born Americans being added to the labor force and immigrants taking native born American jobs.
There was an increase of over 12 million not in the labor force since Obama took office.
The youngest members of the workforce, 16 and above will be hit the hardest by immigrant workers.
And all of those jobs that Obama bragged about and Janet Yellen and others referred to….
Of the approx. 6 million new employments since Obama took office in January 2009, 4,511,000 were Hispanic/Latino!
We have barely, if at all, recovered all of the jobs lost during the recession and 75% of the job growth went to Hispanic/Latinos!!
There were approx. 1.8 more people employed in the last 6 months. 50 percent of those, approx. 900,000, were Hispanic/Latino.
From CNS News February 17, 2015.
“Census Bureau: 30.3% Millennials Still Living With Their Parents”
From the Economic Policy Institute May 1, 2014.
“This paper’s title, The Class of 2014, is admittedly something of a misnomer, as we do not yet know the labor market outcomes of these soon-to-be graduates. However, the outcomes of recent high school and college graduates provide a good sense of the labor market conditions the young men and women graduating this spring will face. This briefing paper examines the labor market that confronts young graduates who are not enrolled in further schooling—specifically, high school graduates age 17–20 and college graduates age 21–24. We look at young graduates who are not enrolled in further schooling in an attempt to focus as closely as possible on the labor market outcomes of those who are starting their careers. ”
“Key findings include:”
- “In today’s labor market, there are nearly 1 million “missing” young workers—potential workers who are neither employed nor actively seeking work (and are thus not counted in the unemployment rate) because job opportunities remain so scarce. If these missing workers were in the labor market looking for work, the unemployment rate of workers under age 25 would be 18.1 percent instead of 14.5 percent.
- Unemployment and underemployment rates among young graduates are improving but remain substantially higher than before the recession began.
- For young college graduates, the unemployment rate is currently 8.5 percent (compared with 5.5 percent in 2007), and the underemployment rate is 16.8 percent (compared with 9.6 percent in 2007).
- For young high school graduates, the unemployment rate is 22.9 percent (compared with 15.9 percent in 2007), and the underemployment rate is 41.5 percent (compared with 26.8 percent in 2007).
- Overall unemployment rates of young graduates mask substantial disparities in unemployment by race and ethnicity. The unemployment rates of blacks and Hispanics are substantially higher than the unemployment rates of white non-Hispanics, for both young high school graduates and young college graduates.
- The large increases since 2007 in the unemployment and underemployment rates of young college graduates, and in the share of employed young college graduates working in jobs that do not require a college degree, underscore that the current unemployment crisis among young workers did not arise because today’s young adults lack the right education or skills. Rather, it stems from weak demand for goods and services, which makes it unnecessary for employers to significantly ramp up hiring.
- The long-run wage trends for young graduates are bleak, with wages substantially lower today than in 2000. Since 2000, the real (inflation-adjusted) wages of young high school graduates have dropped 10.8 percent, and those of young college graduates have dropped 7.7 percent.
- The erosion of job quality for young graduates is also evident in their declining likelihood of receiving employer-provided health insurance or pensions.
- Graduating in a bad economy has long-lasting economic consequences. For the next 10 to 15 years, those in the Class of 2014 will likely earn less than if they had graduated when job opportunities were plentiful.”
From Market Watch February 18, 2015.
“High student debt equals fewer home buyers”
“Going to college usually leads to better jobs and better pay, but it’s also left many people dangerously in debt and unable to buy a house years after they leave school.
A pair of reports in the past two days illustrate the point. The percentage of student loans at least 90 days overdue rose to 11.3% from 11.1% in the final three months of 2014, the New York Federal Reserve said Tuesday.
While delinquencies have fallen from a record 11.8% in 2013, they are still almost twice as high as they were 10 years earlier.
Then on Wednesday the government reported that construction of new homes fell slightly to a 1.06 million annual pace in January. While sales have been rising gradually, they still aren’t increasing nearly as fast as expected almost six years into an recovery. And the percentage of buyers purchasing their first home is still unusually low.
In a fully functioning economy, housing starts should be running around 1.4 million to 1.8 million a year, analysts estimate.
Clearly the weight of student loans is too heavy for many young people to buy a single-family home. Many can’t qualify for a loan in an era of tougher lending standards or afford the monthly cost of a mortgage.”
Janet Yellen, which part of the millennial reality do you not understand???