Archive for June 21st, 2011

It’s structural unemployment … oh, really.

June 21, 2011

Now that the “Bush’s fault” excuse is getting a bit dated, liberal economists are starting to push alternative alibis.

For example,  journalist-economist  Robert Sameulson says  there’s a Great Jobs Mismatch causing “structural unemployment”:

In any dynamic economy, constant changes in technologies, products and companies naturally create gaps between skills available and skills wanted.

A survey for the National Association of Manufacturers … found that companies still faced shortages … for engineers and scientists and among aerospace, defense and biotechnology firms.

For skilled blue-collar jobs, high schools have de-emphasized vocational training, community colleges often aren’t well-connected to local job markets, and union apprenticeship programs have withered

“The number one cause for difficulty in filling positions (cited by 45 percent of companies) is lack of sufficient experience.”  So it’s a Catch-22: You can’t get hired unless you have experience; but you can’t get experience unless you’re hired.

Americans are less willing to move to take jobs. The McKinsey study reports that, in the 1950s, one in five Americans moved every year; now it’s one in 10. “Work is more mobile than workers,”

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Ken Asks:

If it’s a matter of workers being underskilled, why are there “now hiring” signs in box retailers and fast-food joints? 

Why aren’t there more pick-up trucks in the parking lot of Anne Arundel Community College – which offers a deep catalog of vocational courses?

Why aren’t construction sites operated 7 X 24 – using multiple crews working around the clock?  Would get jobs done fater and emplyee more people …

Why won’t people fish where the fish are – e.g. move from, say, Detroit to Texas? 

Does anybody really believe that no American citizens would take the jobs currently occupied by illegals?

Dumping employer provided health insurance … the simple economics

June 21, 2011

Recent studies have projected that many employers will drop their health insurance plans when ObamaCare goes live.

Why?

Simple economics.

According to the Kaiser Family Foundation’—reported in the WSJ –, the annual premium for an average policy last year was $5,049 for a single worker, with the company picking up roughly $4,150 (83%) and the employee the rest.

For a family of four, the total cost was $13,770, with the company picking up $9,773 (71%).

ObamaCare, businesses can stop providing health-care coverage, paying a $2,000 per-worker fine instead.

For small businesses, the trade-off is even more attractive: They are given a pass on the first 50 workers.

So what?

The employees formerly covered by employer-subsidized plans will swell.  Increasing the costs of ObamaCare.

That is, until the Feds raise the fine (tax?) on employers to cover the shortfall.

Bad estimating or clever foxes?

Think about it.

An induced move into a 1-payer system.

Pretty clever.  Especially if funded by a headcount tax (oops, fine) on employers.

Hmmm.

Is that likely to create jobs?

I’m betting the under.

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