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U.S. NEWS Saturday 3 december 2016

US Financial Front:

Jobs report shows Trump to inherit solid but uneven economy

C. S. RUGABER deed. nomic recovery: Kolko says that is “prob- also lost manufacturing
AP Economics Writer Aside from the longer-term The unemployment rate ably the biggest question jobs, yet haven’t seen a
WASHINGTON (AP) — The challenges, recent data is now back to where it facing the labor market similar decline in male em-
U.S. jobs report on Friday suggest that the economy was in August 2007 — four today.” ployment.
made one thing clear: is in decent shape. Ameri- months before the Great Many men who aren’t Instead, Eberstadt points
President-elect Donald cans bought homes in Oc- Recession began. That working blame mental or to high levels of incarcera-
Trump will inherit the same tion over the past three de-
two-track U.S. economy cades. That’s left millions of
that bedeviled his prede- men with criminal records
cessor. that can make it hard for
Hiring is solid and the unem- them to find work even
ployment rate low. But lon- years after they’ve com-
ger-term problems persist pleted their sentences.
— especially a stubbornly Randy Shacka, president of
high number of men who Lansing, Michigan-based
are out of work and have moving firm Two Men and
given up looking. Many a Truck, says job applicants
are likely frustrated former have had a harder time
manufacturing workers passing drug tests in recent
who voted for Trump over years, particularly in states
Hillary Clinton. that have eased marijua-
Employers added 178,000 na laws.
jobs in November, the gov- The company hopes to
ernment said, extending add 3,000 to its 8,000-per-
the longest streak of hiring son staff by June, when
since World War II. And the moving season heats up.
unemployment rate sank But with unemployment
from 4.9 percent to a nine- down and the economy
year low of 4.6 percent. Yet growing consistently, the
the jobless rate dropped company has had to try
mainly because many of harder to find qualified ap-
those out of work gave up plicants. It recently intro-
on their job hunts and were Eric Denker and his wife, Jalen Denker, of Irvine, take advantage of sales to buy suits for business duced a 401(k) plan and
no longer counted as un- school interviews at South Coast Plaza in Costa Mesa, Calif. On Friday, Dec. 2, 2016, the U.S. gov- has ramped up training,
employed. ernment issued the November jobs report. Shacka said.
A key challenge for the (Jeff Gritchen/The Orange County Register via AP) Sluggish pay gains have
Trump administration is to been a chronic prob-
extend the benefits of job tober at the fastest pace in suggests that the economy physical health problems. lem for the economy and
growth to include many of nearly a decade. They’re has fully recovered. Alan Krueger, an econo- have provided less incen-
those who feel left out. The also more confident in Yet the percentage of mist at Princeton and a tive for those who have
job market’s durability will the economy than at any all adults with jobs is still former top adviser to Presi- dropped out to resume job
help to some extent. other point in the past nine 3 percentage points be- dent Barack Obama, has hunts. Average hourly pay
Eventually, low unemploy- years and are spending low where it was in August found that nearly half of slipped in November and
ment should compel em- more. 2007. Some of that decline men ages 25 through 54 has risen just 2.5 percent in
ployers to offer higher pay Those trends are keeping has been driven by retire- who are outside the work- the past year.
to attract more workers. the Federal Reserve on ments among the aging force take pain medica- Wage increases remain
That, in turn, could per- track to raise short-term in- baby boom generation. tion. below the level consistent
suade more Americans to terest rates at its next meet- But for men age 25 through The nation has lost nearly with healthy growth.
resume their job hunts and ing in less than two weeks. 54 years old — prime work- a third of its manufacturing The economy “is funda-
find work. “For the Fed, barring a very ing years — the proportion jobs since 2000, and many mentally underperforming,
“With the unemployment adverse ... development, a who have jobs remains who once held those posi- and needs structural fixes
rate this low and wages ris- hike at the Dec. 14 meet- substantially below its pre- tions have struggled to find to improve its long-term
ing, now is the real test of ing appears to be a done recession level. That trans- work that pays as well. growth rate,” said Doug-
whether a stronger econo- deal,” said Michael Feroli, lates into millions of men But Nicholas Eberstadt, las Holtz-Eakin of the con-
my can bring people back an economist at JPMorgan who are neither working an economist at the right- servative American Action
into job market,” said Jed Chase. nor looking for work. leaning American Enter- Forum and former director
Kolko, chief economist Two measures illustrate the Why have so many men prise Institute, notes that of the Congressional Bud-
at job hunting website In- mixed nature of the eco- dropped out? most European countries get Office.q