U.S. Jobs Now Hiring… Anyone With a Pulse

U.S. Jobs

Last Friday, the August U.S. jobs report revealed an economy that remains under stress. After the report fell well short of expectations, economists and talking heads rushed to suggest that the weak jobs report was tied to the delta variant. Do these people just have a dartboard of excuses for weak economic data? Did it land on inflation first, but then they took a second throw of the dart until it landed on COVID?

There is something entirely rotten in the economy, and it will be again on full display on Wednesday. The Bureau of Labor Statistics releases a monthly Job Opening and Labor Turnover Survey. The estimate before the report was that U.S. businesses have more than 10 million job openings. In June, that official figure was 10.1 million jobs. Now, this signals that there are more jobs available than the number of people officially unemployed.

What does this say about the economy? Aren’t that businesses paying enough? That there aren’t enough people to work? That many Americans aren’t willing or able to move to new jobs across the nation? That companies are struggling to find people who have the skills needed to fill a specific position? The answer is likely yes in some way to all of the above. 

U.S. Jobs Crisis

The United States has a structural jobs crisis. Until the Federal Reserve, Congress, and the White House are willing to admit it, there will be no solution. We require a very long look at ongoing development and education, as well as subsidies for such education; regulatory changes that make it easier for Americans to be mobile; advancements in rural technology; improved compensation structures that reward individual and group achievement; and far more. In addition, we’ll likely need to have a long, hard conversation about automation and the impact of software and artificial intelligence on the future of the workforce. 

This is probably the most critical issue facing the United States economy over the next two decades. But, unfortunately, we’re getting into very public arguments over unrelated policy discussions. It will not come close to delivering the positive economic impact of the labor issue. 

The can will be kicked down the road, and stagflation is likely the outcome. I hate to be the grump on hump day, but this will impact stocks as the Fed starts to taper. Investors will recognize that their investments will likely track the fundamental performance of an underwhelming economy. There is good news… how to profit from this U.S. jobs crisis. That’s why I’ll talk about investing in automation, education technology, and more all this week.

Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.
Garrett Baldwin
Garrett Baldwin
Garrett Baldwin joined Godesburg Financial Publishing as Chief U.S. Markets Analyst in early 2021. A Johns Hopkins-trained Economist, he’s worked with hedge funds, venture capital firms, angel investors, and economic advisors to the U.S. government. Baldwin specializes in market anomalies and alternative investments. He’s written extensively on momentum, value, insider buying, and other unique strategies that provide investors that elusive edge.

Related Articles