Source: NY Times

Category: Employment, Federal Reserve, Fixed Income/Interest Rates

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

5 Responses to “Don’t Expect Job Data Alone to Persuade Fed on Rates”

  1. supercorm says:

    But if the unemployment rate dip near 6.0% as 1.4 million people do not have access to emergency unemployment compensations (affecting both numerator -as many will have to accept any jobs- and the denominator -as many will simply leave the workforce-), then the message will be very difficult to vehiculate …

  2. Angryman1 says:

    The market is setting the FFR rate back at 0. Bye bye QE. That is all the Fed cares about. The “labor” stuff is nothing.

    Remember, the Fed follows the market.

  3. Captin7Seas says:

    Would be nice if Google’s data collection expertise could be melded into statistics to show the percentage of folks not employed because they are too proud to do what it takes to drop a notch in life style / pay-grade reduction, and another granularity to indicate further how many of those have given up the job search entirely due to this lack of perspective or drive

    • ottnott says:

      Because excessive pride or “lack of perspective or drive” are the only reasons someone would not accept a pay cut to get a job?

      If you believe that, I suggest that lack of awareness may be to blame.

      Some people can’t afford low paying jobs. Employment adds expenses to the family budget–substantial expenses if you have children that would require daycare. Transportation costs can eat up a good portion of earnings at a low-wage job. Families can lose eligibility for benefits that they couldn’t afford to purchase with low-wage earnings. There are opportunity costs, too. A person at work can’t devote as much time to education, or to their children (and to the education of their children), or to the care of aging parents.

      The above doesn’t begin to touch the variety of career and home situations that people face.

      So, I reject the notion that an excess of pride or a shortage or perspective or drive is a big part of the reason that people give up on job searches. I further reject the implication that we should react negatively to a person who remains unemployed rather than take a low-wage job. Our economy does not benefit when we waste human capital by placing a lot of our workers in jobs that use little of their experience, training, education, and skills.