Workers cast adrift by technology. Last week we learned that the economy added 236,000 jobs in February. Better than a sharp stick in the eye, to be sure. But it still isn’t enough. Average job growth over the past six months has been about 190,000. At this rate, it will take the economy 5 years to absorb the increase in the ranks of the unemployed since 2007, plus new workers entering the labor force. And don’t forget the 8 million working part time who would prefer full time employment, 3.6 million more than in 2007.
How do we square persistently tepid job growth with the other big economic news of the week, that the Dow Jones Industrial Average hit new highs? Why can corporate profits be strong while employment growth remains weak? This brief essay will address only one of the many reasons: This recovery has simply left many workers behind. Read more »
For most of 2009, Rochester ranked in the Top 20 in the Brookings Institution’s regular reports on the impact of the recession. Indeed, for 2009, Rochester had the 15th best job report among the nation’s 100 largest metros. New York’s job creation record was the best of the 15 largest states.
By the end of last year, Rochester had slid to #41 and New York State to #11. What happened? Well, not much. In Rochester, at least. Our job performance over the last decade has been quite consistent from year to year: We lost jobs, but never more than 2% in a year. The Great Recession was triggered when the real estate bubble burst, the construction and real estate sectors suddenly cooled and millions found their jobs gone or at risk. Having missed the boom, Rochester also missed the bust and continued the trend of the early part of the century—slow shrinkage as the economy struggled to absorb cuts at Kodak and other large employers. Read more »