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phil spade
@Phil · 2:09

New Jobs Report Disappoints: Why so few jobs added?

Well, the jobs report came out this morning and it has left me scratching my head. I really am confused on what's going on here. We have had a growing economy in the first quarter and in April as covet to restrictions are coming down. And this jobs report did not really reflect that. It kind of shows how much room we need to grow out of the pandemic to get jobs back. So it was announced that we created 266,000 new jobs in April


Craig Miller
@Balfan · 2:21
So I think that what's going to have to happen here is employers are going to have to raise salaries in order to attract people. And there's probably going to be a little bit of a standoff for a while here, especially with people employers that are complaining about the unemployment benefits. I think that they're probably going to hope that they're not going to be enhanced. Unemployment benefits aren't going to be renewed, or maybe somehow they'll get cut before they're scheduled to expire
phil spade
@Phil · 1:07

Spot on @Balfan

I think with this jobs report today, I think that's really going to be a catalyst to start to scale those back and not in them completely. I think that'll be the biggest result from today if I was guessing, but I appreciate the comments. I think you're spot on. I think that's a really good analysis of what's going on
Swell Team
@Swell · 0:15

Welcome to Swell!

Michael Hilliard
@MichaelHilliard · 4:49

@Phil@Balfan I would assume things will get better eventually.

Effectively, we haven't had any real wage growth in the minimum wage for decades now. So obviously people who were busting their a** doing three jobs and barely earning above minimum wage, who did well on benefits and actually got to focus on side projects or got to do something one job they enjoy are going to be much more hesitant to go back to working three jobs, and that's going to be problematic
phil spade
@Phil · 2:23

Restaurants closed due to lack of workers

Thank you, Michael. I think that's a great call out. And I really wasn't aware that there was that reclassification of certain jobs. And I totally agree with you if they need it in the midterms, that I think they can revert back to the Trump way of counting jobs if they need that. And voila all of a sudden you have a lot of growth. I think healthcare is a big part of it, and that's a whole different issue. And you're right
Michael Hilliard
@MichaelHilliard · 4:38

The US has an incredibly low minimum wage

If someone most people when surveyed would suggest that they would rather work one job full time than three jobs part time. But the moment you do that, you enter into the health care debate again, where if you give a worker full time hours, you need to give them health care. So my solution would be and it sounds fairly egalitarian at times. But my solution would be to either offer these workers full time employment or raise the wage or make healthcare competitive
phil spade
@Phil · 2:11
Michael, I think your ideas are spot on. I also have zero confidence that our government can work together to make any of those a reality. And that's just the state where the US government is now. I think it's just so entranced on either side that bipartisan legislation is just a thing in the past. Unless there's some unifying event, a large event that happens, they can get everybody behind a cause. It's just not going to happen
Michael Hilliard
@MichaelHilliard · 4:52

The US's comparison with the rest of the world.

Hey, Phil. Yeah, I think you're exactly right. And I think one of the most stark things to look at is the productivity versus hourly compensation rate in the United States. So until about 1980, effectively as productivity went up, so wages. So from 1955 to 1982, the productivity and compensation productivity went up by 108% and compensation went up by 93%
phil spade
@Phil · 3:14

I think the US is too myopic qtr to qtr

And from what I've seen over the years, if there was a function in a business that four people did, the next day, two people would be doing that same work, and those two people would not get a wage increase whatsoever. And then down the road, there's one person doing that same job. So you look over the course of eight years, if four people were doing the same industry function, now, only one person was doing that. And that's definitely a productivity gain