No net growth in new jobs in August kept the US unemployment rate at 9.1 percent. Below we’ve broken out Mark Trumbull’s report on Six reasons the country is struggling to put people to work (NOTE: it’s a long read, so we’ve linked each item below to it’s corresponding page online. Long live long reads!):
- Rent-a-worker Economy: Businesses in many industries are managing their people for maximum efficiency through techniques that range from outsourcing whole departments to relying on contract workers and on-call support.
- The Resume Gap: Lacking the skills needed for the jobs open. Or skilled professionals not knowing a job that fits their skills exists.
- Rise of the “Plutonomy”: Conservatives hate the term, but it helps to explain the gap between unemployment rates and the continued opportunities for “talent elite” that keep growing in what many call a “knowledge economy.”
- The China Syndrome: Cheaper and more abundant labor coming from China and other countries.
- Somebody start a company!: Start up activity has plummeted, running 25 percent below its 2006 peak, it is at its slowest pace since the Labor Department began tracking the activity in 1994.
- When a home is a dungeon: Less room for personal spending, less room for bank lending, more room for consumers feeling trapped.