Records Profits, But Most Hiring is Overseas and Latest Hiring Gains Mask Main Street Pains — 08/03/13

For Your Entertainment (FYE)
“”The U.S.-based CEO of one of the world’s largest hedge funds told me that his firm’s investment committee often discusses the question of who wins and who loses in today’s economy. In a recent internal debate, he said, one of his senior colleagues had argued that the hollowing-out of the American middle class didn’t really matter. His point was that if the transformation of the world economy lifts four people in China and India out of poverty and into the middle class, and meanwhile means one American drops out of the middle class, that’s not such a bad trade.””“But then again, are they really so concerned about lifting the poor out of poverty in third world nations, or is it just a simple matter of plain old fashion greed, and they are just using these humanitarian excuses (as a public relations matter) as a cause for their actions?””

“While the economy added 162,000 jobs in July, wages and hours worked actually edged lower and the job quality remains suspect, even as the unemployment rate ticked lower to 7.4 percent. ““More than half the positions—85,000 in all—came in either retail jobs like Maxie-Collins’ or in the leisure and hospitality industry. That’s been a trend repeated month after month in the recovery from the financial crisis and looks unlikely to end soon.”

“”What we see in the job market reports for the last couple of months just does not tell the story as to what’s really going on beneath the surface,” said Mike Hard, CEO at BountyJobs.”

“Hard’s firm hosts an online platform that allows companies to manage the use of headhunters—those professional recruiters who help companies fill open positions.”

“What he sees is a two-speed jobs market: A great one for skilled professionals who already have jobs and are looking to progress up the ladder, and an awful one for those out of work, who haven’t been employed in a while and are trying to crack their way back into the labor force. “

“”If you’re a passive candidate now, meaning you have five to seven years of experience and you have a job already, the companies are falling all over themselves to find you,” Hard said. “If you’re actively looking, then there are thousands of people just like you.” ”

“That’s the story beneath the government jobs numbers—an economy trying to maintain traction while Wall Street stock market indexes like the S&P 500 prosper and Main Street workers struggle.”

“Hamilton worries that the current four-year expansion is nearing its limits, as the average post-recession recovery lasts 58 months.”

“That could spell bad news for job seekers.”

“”My fear has shifted to if we only have another year of growth, and let’s say we stop out at a 7 percent unemployment rate,” Hamilton said. “What happens if we go into another recessionary cycle?””


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