While the data looks disappointing, the major indices surged ahead, with the Dow nearly breaking the 20,000 mark - all because of the 2.9% wage growth which translates to higher disposable income for the average worker when measured against the 1.7% 'official' inflation rate.
The 4.7% unemployment report is actually a farce as 95.1M Americans of employable age remain without a job.
Furthermore, the Labour Participation Rate which remains below 63% vs 67% prior to the global financial crisis.
Here's a chart from Silverdoctors which show why the US could face tremendous headwinds in the near future due to changing demographics in the workforce.
As can be seen from the chart, the current number of workers from the age groups of 16-24, 25-34, 35-44 and 45-54 have all fallen into negative territory when compared tot hat of the year 2000.
This could extol are terrible pressure on Social Security, Medicaid and pension funds in the future due to declining contributions.
What happens wen those in the age groups of 55- 64 and over 65 finally retire?/
No comments:
Post a Comment