Tags: robert | reich | jobs | rehired

Reich: Getting Rehired Means Lower Pay

By    |   Friday, 04 Dec 2009 08:23 AM

Don't count on a return of jobs to boost the still-shuffling-along U.S. economy.

Such is the gloomy assessment of Robert Reich, former Secretary of Labor under President Bill Clinton, writing recently on his blog.

"The basic assumption that jobs will eventually return when the economy recovers is probably wrong," wrote Reich, now a professor at the University of California at Berkeley.

"Some jobs will come back, of course," according to Reich. "But the reality that no one wants to talk about is a structural change in the economy that's been going on for years but which the Great Recession has dramatically accelerated."

Blame the Great Recession, says Reich. It forced many a U.S. company to find a way to cut payroll permanently. Simultaneously, new computer software and technology boosted productivity among Asian and Latin American workers to a level equal to that of U.S. workers.

"And…the Internet allows far more work to be efficiently outsourced abroad," said Reich.

The result, in Reich's dark forecast, is that "Americans won't be rehired unless they're willing to settle for much lower wages and benefits."

That will mean, "…More working families at or near poverty, and a widening inequality."

The remedy is a massive government investment in education from early childhood through college, Reich writes.

As Reich was predicting the disappearance of jobs, claims in early December for unemployment benefits fell for the fifth consecutive week, according to the U.S. Labor Department, indicating a slowly recovering job market.

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Don't count on a return of jobs to boost the still-shuffling-along U.S. economy.Such is the gloomy assessment of Robert Reich, former Secretary of Labor under President Bill Clinton, writing recently on his blog."The basic assumption that jobs will eventually return when...
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2009-23-04
Friday, 04 Dec 2009 08:23 AM
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