Job market hollows out in the middle
A Harvard professor says it's because more Americans are shunning risk that could bring rewards.
"The U.S. labor market is becoming more sclerotic."
That's the take of Harvard University Professor Lawrence Katz, a former chief economist at the U.S. Labor Department, who sees a major "hollowing out" of the middle of the job market.
Americans are becoming less and less inclined to take a risk in the job market, to move to another house to accept a new job, or to start their own businesses.
The concerns of U.S. economists and educators are piling up into a possibility once unmentionable in American politics. The USA may be becoming more and more like Europe.
Steven Davis at the University of Chicago ticked off the similarities to Bloomberg's Rich Miller: "Higher unemployment rates, longer unemployment spells, steep falls in the employment rate in the working-age population, a slower pace of worker flows, and a slower pace of job creation and destruction."
Read Miller's dynamic piece with anecdotes and stats from employers and job seekers here.
More from Bloomberg
Let's face it, employment will not return to how it was prior to 2008. A lot has changed with the great recession. Self employment sounds logical, however in this economy, I would think that it would be a extremely risky proposition. Banks are not that receptive to lending to small businesses, even with Obama's stimulus funding. It would appear to be more practical if one had some money to sink into a self employment venture besides for bank financing, that it would be to their best interest to place the money in a secure IRA. American is not treading in a strong and vibrant economy.
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Breaking up big banks is an untested solution to the too big to fail problem that attempts to isolate and dismantle large, troubled institutions while protecting the rest of the economy.
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