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I am bit surprised by the fact that with unemployment rate that is all time low, people should eventually see that savings amount go up overall. This is almost
by akshayB 7y ago
I am bit surprised by the fact that with unemployment rate that is all time low, people should eventually see that savings amount go up overall. This is almost saving like $8 per week which is close to hourly minimum wage. Personally I think either people spend way too much money or they don't follow strict discipline of saving small (%) of their income.
- mAEStro-paNDa 7y agoPerhaps instead the employment rate doesn't tell the whole story?
- cirgue 7y agoThe people working in the sharing economy because they don't have other options for income get counted in employment statistics. The PhD working at starbucks gets counted in the employment statistics. People who are not actively seeking employment don't. The unemployment rate might be low, but the labor participation rate has been hovering around 63% since 2016. It was above 66% for most of the 90s through the early 2000s, until the financial crisis. Employment statistics are, at best, useful for comparing last year to this year, or last quarter to this quarter. They say little about the overall structure of the economy.
- metalliqaz 7y agoLow unemployment rate only improves savings if incomes rise as a result of the increased demand for labor. Though wages have ticked up a little bit, we haven't seen the expected rise in incomes that would be expected for our historically low unemployment rate. I'm not sure anyone knows exactly why, but I've been led to understand that the rosy picture painted by the unemployment rate is undercut by the copious amounts of underemployed americans, as well as leftovers from the great recessions that never re-entered the workforce. There is also the current trends of automating the workforce, and the gig economy, both of which suppress the value of labor.