This week unveils new indications that our reality is somewhat contrived. While media narratives paint a picture of unblemished prosperity, the everyday experience is often less than ideal.
On Tuesday, the Labor Department announced a historic peak of 6.6 million job openings in March. This figure coincidentally matched the number of Americans actively searching for work. A notable achievement indeed!
This milestone marks the first instance where every unemployed individual has a corresponding job opening since the Labor Department began tracking such data nearly two decades ago. Chris Rupkey, chief financial economist at MUFG Union Bank, upon reviewing the report, enthused: “The labor market is literally on fire with job openings!”
However, it’s crucial to recognize that not every job aligns with every individual’s skill set. The existing disparity could explain why the unemployment rate stands at 3.9 percent rather than a perfect 0.0 percent.
Doesn’t the flawless 1:1 ratio of job openings to unemployed individuals seem a tad orchestrated? Well, it is.
Such statistics, alongside many official figures, appear to be more illusion than reality. They don’t align with the tangible experiences of diverse populations.
Fabricated Narratives
Is the labor market genuinely ablaze with job openings as claimed by the Labor Department? Let’s verify these assertions.
Unemployment rates can be manipulated in various ways. Some methods are straightforward, while others require more effort. Decreasing the unemployment rate through heightened employment levels is a challenging endeavor. It demands time, dedication, and positive economic growth.
However, society often leans toward instant results over hard work. This preference fits snugly with the mindset of government statisticians.
Thus, a swifter, simpler approach is employed: reducing the number of individuals counted as unemployed, effectively making them “disappear.” Problem resolved! In an insightful piece, Erik Sherman from Forbes illustrates how these statistics are skewed:
“The number of jobs increased by 164,000 in April. But the number of unemployed dropped by 239,000 between March and April.
“This is why the employment-population ratio — which represents the working-age population (16 and older, including those who have stopped looking for work) that is employed — decreased from 60.4 percent to 60.3 percent. More people effectively vanished from the labor rolls.”
Thus, statistics are manipulated for convenience. The individuals who seemingly disappeared didn’t actually vanish; they were merely excluded from the unemployment rate data.
Nevertheless, fabricated figures cannot transform a struggling economy into a thriving one. They merely construct a fictional narrative aimed at political convenience.
Strategies to Thrive in Today’s Economy
Another point of contrast to the Labor Department’s dubious figures is wage growth. A genuinely low unemployment rate should accompany a high demand for workers, which democratizes wage-setting.
In an ideal economy, like one with a 3.9 percent unemployment rate, robust wage growth would be expected. Yet, wage increases currently lag behind inflation, leaving any nominal raises effectively nullified.
How can unemployment be at 3.9 percent while wage growth remains feeble? The answer is straightforward: the unemployment rate is misleading.
So, how can one excel in today’s economic landscape? Here are a few avenues to consider:
Option 1: Work diligently, log extra hours, save scrupulously, and steer clear of debt. While this may accumulate savings over years, eventually, you may run out of hours in the day.
Option 2: Embark on an entrepreneurial journey. With patience and sacrifices, you might find success, albeit after years of hard work.
Option 3: Withdraw from the workforce entirely, finding solace instead at a local spot like the Santa Monica Public Library, where free Wi-Fi beckons.
Ultimately, a combination of Options 1 and 2 may be the most prudent approach. While this may be a taxing process, maintaining enthusiasm and urgency ensures you’ll always have hope.
And a dose of hope can certainly put you ahead of the majority.
Sincerely,
MN Gordon
for Economic Prism
Return from How to Get Ahead in Today’s Economy to Economic Prism
