Tags: obama | economy | hiring | market

Few Workers Benefiting From Obama Economy

Monday, 04 Mar 2013 11:11 AM

By Lisa Barron

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The economic recovery is helping major corporations but not benefiting American workers, a situation that could get worse as the new automatic spending cuts begin to take effect, reports The New York Times.

“So far in this recovery, corporations have captured an unusually high share of the income gains,” Ethan Harris, co-head of global economics at Bank of America Merrill Lynch, told the newspaper. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”

While profits helped to push the Dow Jones Industrial average past 14,000 last week — close to a record high — unemployment has been stuck at just below 8 percent since September.

With millions out of work, there is little pressure on companies to raise salaries; at the same time, gains in productivity allow corporations to increase sales without adding workers, experts say.

Meanwhile, experts estimate that the $85 billion in automatic cuts taking effect between now and Sept. 30 as part of the budget sequestration could cost an additional 700,000 jobs. The cuts are not expected, however, to substantially hit the bottom line in corporate America, or reverse the rally in stocks.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Gov. Perry: 'I Have Sympathy' for Illegal Workers Here to Feed Families

Wednesday, 23 Apr 2014 19:04 PM

Texas Gov. Rick Perry has something in common with former Florida Gov. Jeb Bush: They both agree that illegal immigrants . . .

Contractor Jailed in Cuba Threatens Terminal Hunger Strike

Wednesday, 23 Apr 2014 18:17 PM

The lawyer for jailed U.S. contractor Alan Gross told the press in Havana on Wednesday that his client planned to return . . .

Sen. Johnson: Lawsuit Support Good Sign for Obamacare Repeal

Wednesday, 23 Apr 2014 17:07 PM

Sen. Ron Johnson of Wisconsin says his lawsuit targeting the Affordable Care Act has garnered the support of 38 Republic . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved