The article by Sri-Kumar (2018) addresses the question of the actual meaning of the current unemployment rates which stand at under 4%, making it arguably the lowest in the century. The answer to the question as per the article is that the seemingly good tidings on low unemployment may not be good news on a micro and macroeconomic level. It makes the argument that the low rates of unemployment being experienced in American today do not herald great economic growth and might even be a sign of an economy in future crisis. The low unemployment rates are not caused by an increase in the labor market but a reduction in the numbers of Americans who want jobs (Sri-Kumar, 2018). The fact that more people who can work do not want jobs is bad for the American economy hence the low unemployment numbers are misleading.
The alternative answer canvassed in the article was to the effect that the low unemployment rate can only mean that the economy is doing extremely well. Indeed, the stock markets reacted positively to the news about unemployment falling below 4% (Sri-Kumar, 2018). The reaction can only mean that popular opinion among the investors is that the US economy is improving at all levels hence more and better jobs are being created. In that regard, the article shows how the stock market reacts to popular issues substantively without carefully evaluating the facts. Conversely, the article reflects how labor rather than the labor market is shrinking in America. As per the article, since the great recession of 2008, more Americans who are in a working bracket, including baby boomers have been retiring out of choice, not because they are too old to work (Sri-Kumar, 2018). The high rates of retirement are shrinking the labor itself, thus pushing down unemployment numbers. The trend is bad news for the US economy, going into the future.
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The article’s theme has a close correlation with my faith as a Christian pursuant to 1 Thessalonians 5:3 which states “ For when they shall say, Peace and safety; then sudden destruction cometh upon them…. ” (King James Version). Americans are celebrating yet they have not taken time to fully understand what is going on, thus missing the chance to do the right thing and remedy the situation before it is too late. As a future parent, I would want my children to grow up in a country with a robust economy and great standards of living. Lauding the current economic status where people have to work multiple jobs just to make a living is jeopardizing that potential. Further, an economy where people are not motivated to work, even when they have the potential to do so is not going in the right direction, making me apprehensive about the kind of economy my children will have to operate in.
I desire to know more about what the diminishing labor that has in recent months moved from “ 82.2 percent in March to 82 percent in April ” (Sri-Kumar, 2018) means for the future of the economy. Further, the bullish stock market seems to be predicated on a misunderstanding of the current economic health, hence I would want to know what this will mean for the economy in future. More important than understanding the problem is having a proper understanding of the solution. I would not want America to be like that country that was busy celebrating peace and security just before it was met with terrible destruction as per the scripture quoted above. Instead, I would want to understand what can be done to rectify the situation and get the nation’s macroeconomic path on substantive growth; hence creating a better future for the coming generation.
References
Sri-Kumar, K. (2018, May 07). An unemployment rate under 4% is only half the story of the US jobs market. Retrieved from https://www.businessinsider.com/us-jobs-market-unemployment-rate-under-4-half-the-story-of-2018-5?IR=T
