The Bureau of Labor Statistics' monthly employment report, released on November 3, 2017, is extremely enlightening about the condition of the US economy. The report reflects a steadily growing economy that is daily matching towards full employment, where every willing and able to work person will be employed; this is clear from the declining unemployment rate, which according to the Bureau of Statistics, fell by 0.1 point in October compared to the previous month (Bls.gov. However, it is quite fair to argue the great difference between the economy on the paper and the real economy on the ground as far as employment is concerned. The Bureau of statistics portrays positive employment growth in the United States of America and assumes that all is well with all the employed. A largely opposite picture is realized when a grassroots interview is conducted on the so-called employed in the diverse sectors. There is a great discovery of oddness and professional underutilization and underrating. People with high qualifications performing odd jobs to sustain their living while others are having to work extra hard to meet their daily needs. The study by the Market place on my economy explores the background facts of full employment and tries to match them with the monthly economic release by the Bureau of statistics or rather the economy on the paper (Adams)
. After concluding their research in one of the renowned industrialized areas in the united states of America, Alabama, it was unfortunate to term the employment rate and the state of the economy as ‘just a number’ on realizing the extent to which many people classified in the bracket of employed go for their living (Images, KUDRYAVTSEV/AFP/Getty)
. Angelique a 27 years old lady, for instance, works as a waiter at Dreamland, one of the restaurants located in the industrialized area of Alabama. Most interesting, Angelique is a graduate of the University of Alabama and currently taking her master’s degree with plans of taking up a Ph.D. soon after her post-graduate (Hartman)
. Besides, the lady is piled up with debts to a tune of 190,000 dollars. In another instance, a father of four by the name Zayvion Jackson works in the same restaurant as a cook of the renowned ribs in Dreamland. At this particular restaurant, Jackson works during the night and weekends. However, this is not the only job that Jackson does; during the day Jackson is a worker at Taylor Electric. These are just but minor examples of people hanging on uncertain future and who have almost exceeded their expectations and are still counted as working (Hartman).
It is an irony to record the rising rate of employment and the decreasing rate of unemployment while the so-called employed hardly get a living; the employed living in debts as unemployed and employees having to overwork for a living. If this is the case then, economic development is wrongly defined. Economic development seeks to enhance the well-being of a society and the quality of life for a community through creation and retention of employment while supporting income growth and tax base (Ryssdal)
. In this case, therefore, sustainable economic growth is one that is based on the creation of sustainable employment about one’s professionalism and level of education and experience and one that guarantees income growth over time. The employment report by the United States Bureau of statistics seems to overlook the meaning of the definition of economic development by analyzing employment just as mere employment, that is, whether sustainable or unsustainable. Hence, the simple meaning of the report is that the United States economy is only growing on the papers while in the real sense it is stagnant and deteriorating on the ground.
The United States Bureau of statistics recorded a 4.1 percentage rate of unemployment in October, a rate closer to attaining full employment. Economists and federal policymakers term this rate as almost the minimum recommended rate of unemployment and beyond this rate will lead to economic imbalances such as acute labor shortages, a sharp rise in wage rates in addition to scramble for employees by employers(Mohana and Adriene)
. At 4.1 rate of unemployment, it is expected that anyone willing and able to work should be employed. Nevertheless, this rate contradicts its economic meaning from the Bureau of statistics; there are still millions of people willing and able to work in the United States, but they still cannot find jobs. Africa-Americans, young people and other groups of people are still unemployed in large numbers, and educated people are still seeking and being employed in odd jobs. Moreover, the effect of the discouraged worker is still high, and the labor participation rate is still low; many people are still in seasonal employment and hourly jobs with less guarantee and hope of long-term jobs and permanent employment (staff, Marketplace. With this trend, it is difficult to anticipate sustainable economic growth as earlier stated.
According to the federal monetary reserve, full employment consequently results in inflation due to the rise in wage rate which leads to increase in consumer prices (Bls.gov). The October 4.1 unemployment rate should be indicative of these changes as the economy moves towards full employment. On the contrary, according to the Bureau of labor statistics, United States registered stagnation of consumer prices over the year. This is an indication of no income growth and thus invalidating the correctness and validity of the economic report by the United States Bureau of statistics.
The report by United States Bureau of statistics is not a clear and true reflection of the current state of the American economy. The American economy is rather in a recessionary gap where the real GDP is actually below the potential GDP at the level of full employment (Bea.gov). In other words, the American economy is operating below the level of full employment and the economic expectation at this particular state is a decline in consumer prices in long-run.
To address this issue of the recessionary gap, the United States government will need to apply an expansionary fiscal policy that will aim at encouraging the growth of the economy by expanding the money supply. To achieve this, the government requires to heighten its expenditure and reduce taxation (Economist.com)
. Reduced taxation and increased government spending will ensure enhanced business growth and expansion which will consequently lead to the creation of more employment and reduction of the unemployment rate. This way, the unemployment rate at 4.1 will be real, and its true effects will be realized. Moreover, expansionary fiscal policy will bring about the realization of sustainable economic growth that is based on the reality on the ground but not on paperwork.
Works cited
Adams, Kimberly. Marketplace, 2017, http://www.marketplace.org/topics/economy/my-economy/my-economy-what-full-employmentactually- looks.
Bea.gov. "News Release: Gross Domestic Product." Bea.Gov, 2017, https://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm.
Bls.gov. "Cite A Website - Cite This For Me." Bls.Gov, 2017, https://www.bls.gov/news.release/pdf/empsit.pdf.
Bls.gov. "Consumer Price Index Summary." Bls.Gov, 2017, https://www.bls.gov/news.release/cpi.nr0.htm.
Bls.gov. "Employment Situation Summary." Bls.Gov, 2017, http://www.bls.gov/news.release/empsit.nr0.htm.
Economist.com. "Cite A Website - Cite This For Me." Economist.Com, 2017, https://www.economist.com/blogs/buttonwood/2017/09/global-economy-0.
Hartman, Mitchell. "Jobs Jolt Higher In October." Marketplace.Org, 2017, http://www.marketplace.org/topics/economy/jobs-jolt-higher-october.
Hartman, Mitchell. "With Full Employment In View, Who’S Still Looking For Work?." Marketplace.Org, 2017, https://www.marketplace.org/2017/03/10/economy/full-employment-view-who-s-still-looking-work.
Images, KUDRYAVTSEV/AFP/Getty. "How We Get To "Full Employment"." Marketplace.Org, 2017, https://www.marketplace.org/2016/07/08/world/how-do-we-get-full-employment.
Mohan, Mukta, and Adriene Hill. "A Little Bit Of Inflation Is Actually A Good Thing." Marketplace.Org, 2017, http://www.marketplace.org/topics/economy/little-bit-inflation-actually-good-thing.
Ryssdal, Kai. 2017, http://www.marketplace.org/topics/economy/weekly-wrap/weekly-wrap-jobs-report-inflation-and-janetyellen.
staff, Marketplace. "October Treats The U.S. To A Strong Jobs Report." Marketplace.Org, 2017, http://www.marketplace.org/topics/economy/numbers/october-treats-us-strong-jobs-report.
