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Labor Market

Margins Remain Suspicious

Michael Farr | Posted 08.22.2014 | Business
Michael Farr

So what are the causes for optimism with regard to future earnings power? Well, the most notable are probably the recent sharp decreases in interest rates and gas prices.

U.S. Labor Force: Where Have All the Workers Gone?

Ravi Balakrishnan | Posted 08.12.2014 | Business
Ravi Balakrishnan

As the U.S. economy recovers, hirings increase and people are encouraged to look for jobs again. Instead, the ratio of the adult population with jobs, or looking for one -- what's called the labor force participation rate -- has been falling, standing at 62.9 percent in July 2014

Enough Fed! Give Free Markets a Chance!

Michael Farr | Posted 07.25.2014 | Business
Michael Farr

The widespread expansion of credit to car-buyers, especially to sub-prime borrowers, is beginning to cause some industry observers to cry "bubble." Is this economic progress?

More of the Same

Michael Farr | Posted 08.18.2014 | Business
Michael Farr

As expected, the Federal Reserve stuck to its pattern of reducing asset purchases by another $10 billion. The monthly pace is now down to just $35 bi...

Lean Education: What College Students Can Learn From Lean Startups

Michael B. Fishbein | Posted 08.16.2014 | College
Michael B. Fishbein

It's a quintessential startup story: An entrepreneur spends months, if not years, and more money than they can afford to lose building and launching a...

Why You Might Finally Be Getting That Raise After All

The Huffington Post | Mark Gongloff | Posted 06.11.2014 | Business

The recovery might soon start to feel like a real recovery: There are hints that wages could finally start growing again after a long rut. Stagnant...

What's Going on With Interest Rates?

Michael Farr | Posted 07.29.2014 | Business
Michael Farr

An aggressive rally in the Treasury market this morning has resulted in the lowest 10-year Treasury yield since June of last year.  Nearly everyone is looking for an explanation as to why longer-term interest rates continue to fall in the face of reduced Fed support and better economic data.  So what is going on?

Tracking Earnings

Michael Farr | Posted 07.19.2014 | Business
Michael Farr

While the overall quality and composition of earnings in the 1Q may have improved somewhat, index earnings growth remains highly dependent on margin expansion.

Economists Are Wrong

Michael Farr | Posted 07.07.2014 | Business
Michael Farr

To boil things down, there are really only two roads we can follow in an environment of such as this. The economy will either muddle along at a sub-par rate of about 2 percent until balance is restored, or we go down the path of running up debt in an effort to produce higher growth rates in the near term.

The Top 10 Reasons the Economic Recovery Is as Dull as a Dead Parrot

Douglas Holtz-Eakin | Posted 06.28.2014 | Business
Douglas Holtz-Eakin

An economy with nobody working is boring. The share of the population that is working simply has not recovered.

Market Noise and Fed Messaging

Michael Farr | Posted 06.16.2014 | Business
Michael Farr

So far this year, the mid-cap banks are outperforming their behemoth cousins, and we now may know why. The big question, though, is how detrimental have these new regulations been to the economic recovery?

Avoiding a Lost Generation

Claire Courteille-Mulder | Posted 05.25.2014 | World
Claire Courteille-Mulder

One important step to be taken in order to bring down the high unemployment rate is to close the skills gap on youth labor markets. The skills mismatch has become a persistent and growing trend in Europe. Over-education and over‐skilling coexist with under-education and under‐skilling and increasingly with skills obsolescence brought about by long‐term unemployment. Evidence shows that there is a higher risk of mismatch for those at the bottom of the educational pyramid, which is reflected in relatively high unemployment rates for low‐skilled youth in comparison with high‐skilled youth.

The Fed Moves the Goal Line

Michael Farr | Posted 05.20.2014 | Business
Michael Farr

I believe that the Fed has overreached in its monetary policy not just in response to the latest crisis, but pretty consistently over the 15-20 years. In an effort to lessen the effects of (inevitable) economic downturns, the Fed (and other central banks) has caused extreme financial distortions and dislocations.

Raising the Minimum Wage Is Only One Part of Boosting the Economy

Mehroz Baig | Posted 05.04.2014 | Politics
Mehroz Baig

The decline in America's middle class is a threat to our economy because our economy is consumer driven. If consumers lose purchasing power, our economy suffers.

Mother Nature Clouds the Outlook

Michael Farr | Posted 04.27.2014 | Business
Michael Farr

How much of the slowing can be blamed on Mother Nature? Nobody knows for sure, of course, but there is enough reason to believe that the brisk pace of growth recorded in the second half of 2013 will not be sustained in 2014.

Surprise Fed Jobs Report Is Extremely Misleading

The Huffington Post | Mark Gongloff | Posted 02.04.2014 | Business

People have been buzzing about a new study suggesting the U.S. job market is in better shape than we think. If that doesn't sound right to you, that's...

The VIX Also Rises

Michael Farr | Posted 04.05.2014 | Business
Michael Farr

The more people working, earning income and spending, the greater the economic benefits. The masses move the needle, not the 1% at the top.

Job Hunting in College: Expectations Vs. Reality

Mehroz Baig | Posted 03.25.2014 | College
Mehroz Baig

"I really enjoyed my time at Oberlin and I felt like I was learning, but I wasn't progressing towards a job at the end of graduation," said Ned Lindau...

Eight Million Jobs Are Still Missing In America

The Huffington Post | Mark Gongloff | Posted 01.23.2014 | Business

Six years after the start of the Great Recession, nearly eight million jobs are still missing from the U.S. economy. That's how many more people wo...

Pensions at a Glance -- Compare Your Country

OECD | Posted 03.08.2014 | Money
OECD

What percentage of GDP is spent on pensions? At what age are people exiting the labor market? What is the poverty rate for those over 65?

Guess Who Has the Key to Washington's New 'College Report Cards' -- Before They Are Written?

Julian L. Alssid | Posted 02.19.2014 | Education
Julian L. Alssid

As Washington plans a new program to issue 'report cards' on colleges and universities, they should probably know there's a group that is already sending CliffsNotes to every school in the country: employers.

An Open Letter to the One Percent

Anthony W. Orlando | Posted 01.25.2014 | Politics
Anthony W. Orlando

You worked hard for that money. No one can deny that. You have been rewarded for your talent, your intelligence, your risk-taking, your creativity, and your good fortune. The notion that you should change a system that has worked so well must seem downright stupid.

16,000!

Reuters | Posted 01.25.2014 | Business

NEW YORK, Nov 21 (Reuters) - The Dow industrials closed above 16,000 on Thursday for the first time and other major indexes also ended higher after ...

Labor Market Will Lose 310,000 Jobs in 2014 If Unemployment Insurance Extensions Expire

Lawrence Mishel | Posted 01.23.2014 | Business
Lawrence Mishel

Federally funded extended unemployment insurance (UI) benefits are set to expire at the end of this year. Continuing the extensions through 2014 would generate spending that would support 310,000 jobs. If this program is discontinued, the economy will lose these jobs.

The Rise in Part-time Employment

Mehroz Baig | Posted 12.16.2013 | San Francisco
Mehroz Baig

Are millennials doomed? The numbers would suggest so, but that's not necessarily the case.