Some Thoughts On Job Creation

Presidents are always puffing up and beating their chests about all the jobs they’ve created by their general goodness, wisdom, and pluck.

Here’s the thing — we don’t need any more jobs in the short term. We have plenty of jobs.

We need folks to fill jobs. Let me show you why I think this:

 1. The US Bureau of Labor Statistic publishes a nifty monthly report called the JOLTs report — Job Openings and Labor Turnover. Catchy, eh?

It always seems to be a little behind the times, because the most recent one was published on 12 October and it had the August 2021 numbers.

 2. The report provides information on:

The number of open jobs;

The number of hires;

The number of folks who have quit their jobs; and,

The number of folks who have been involuntarily laid off, discharged, or “other” separations.

So, what does it say, Big Red Car?

Fine here it is:

 1. Employers had more than 10,400,000 job openings in America as of the last day of August.

 2. Employers hired more than 6,300,000 folks in August.

 3. About 4,300,000 folks quit their jobs in August.

 4. Only 1,300,000 folks got laid off or discharged in August.

The bottom line is this: We don’t need to create any more jobs because we have way more opening jobs than we have available unemployed folks to fill them.

Oh, I guess I should tell you we currently have 8,400,000 folks unemployed in the United States.

Wait, what, Big Red Car?

But, it isn’t quite that easy: Folks are also quitting their jobs to seek better employment. That’s the significance of the high number of folks quitting in August — workers are confident they can find a better job, likely with better pay and better working conditions.  WFH reality bleeding into the marketplace for labor?

Employers are very keen on keeping employees and only laid off or discharged 1,300,000 folks in August.

This is a slightly odd labor market.

Oh, yeah, labor wages are going up whilst median family income was going up. Too bad most of that — well all of those increases — are being gobbled up by inflation.

Bottom line it, Big Red Car

Well, dear reader, I sort of already did, but for you, let me take another crack at it.

 1. We had 10,400,000 unfilled job openings in the latest JOLTs report.

 2. We have 8,400,000 unemployed folks in the whole country. <<< MORE JOB OPENINGS THAN UNEMPLOYED by 2,000,000

 3. Employers hired 6,300,000 folks in August.

 4. More than 4,300,000 folks quit their jobs to find a better job.

 5. Only 1,300,000 folks got fired.

So, like I said: job creation is not really the problem. Do you agree?

But, hey, what the Hell do I really know anyway? I’m just a Big Red Car. Great week ahead. Get some.