Tags: Exclusive Interviews | MidPoint | economy | jobs | midpoint | work force

Economist: US Workforce Still Shrinking

By    |   Friday, 03 October 2014 04:49 PM

Behind the handsome headline numbers for monthly U.S. jobs growth lies a "troubling" trend of Americans who have simply quit looking for work, a former government economist told "MidPoint" host Ed Berliner on Newsmax TV Friday.

While the economy added 248,000 jobs in September, and unemployment hit a six-year low of 5.9 percent, "The whole story is that the percentage of Americans who are working or looking for work has declined to another record," said Diana Furchtgott-Roth, director of the Economics 21 center at the Manhattan Institute.

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The overall labor force participation rate fell to 62.7 percent in September. Many economists say that index is a truer measure of economic health and activity than the national unemployment rate. 

Furchtgott-Roth called it "very troubling that, as the economy strengthens, people are not moving back into the labor force.

"Instead," she said. "they’re withdrawing from the labor force, and that’s going to cause problems for economic growth ahead. We seem to be stuck at 2 percent economic growth, which just isn’t enough to generate the jobs that Americans need."

The latest job-creation numbers show increased hiring in service, education, health and manufacturing.

"But what we need is broad-based growth all across the spectrum," said Furchtgott-Roth, "and most importantly, we need to stop doing things that discourage businesses from creating jobs right here."

She said it's time to lower the U.S. corporate tax rate closer to the international norm and stop taxing American companies' overseas earnings — or eliminate the corporate tax entirely and make up the difference with higher tax rates on dividends and investment income.

Furchtgott-Roth said that job creation is still hampered by "a combination of taxes and regulation, and it's not difficult to fix both of those."

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Behind the handsome headline numbers for monthly U.S. jobs growth lies a "troubling" trend of Americans who have simply quit looking for work, a former government economist told "MidPoint" host Ed Berliner on Newsmax TV Friday.
economy, jobs, midpoint, work force
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2014-49-03
Friday, 03 October 2014 04:49 PM
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