“The jobs report is in, and it’s an unmitigated disaster”

 

The above quote is from Charles Payne of wstreet.com

 

Allow me to share a few additional thoughts from Charles (whom I have personally met) – and agree with about 99.9% of the time.

 

Now that a weekend has gone by, I’m going to reflect upon the jobs report.

 

The “headline” number was 8.2%

 

Now, in an election year, and given how the unemployment rate is calculated, getting it to rise at this time is a REAL DANGER sign.

 

Why do I make such a definitive statement? Simple – more and more folks are “dropping out” of the job pool (at least as the government calculates it). When someone loses their job and runs out of unemployment – as far as the government is concerned, they do not exist!

 

For those who are familiar with statistics, you can see how the unemployment “rate” can go DOWN even if the “unemployment picture” is NOT improving. So, for the rate to go UP, when less than 70,000 jobs were “created”, the unemployment picture is truly dismal.

 

I’m writing today from Santa Rosa, New Mexico. A hot, dusty desert town in eastern New Mexico. I went for a bicycle ride at sunrise, it felt good, but now at 8am, its already getting hot! Fortunately, there is a lake in town to cool off at!

 

Why do I mention Santa Rosa? Well, other than the “human interest” aspect, I want to share the condition of “Main Street”. This is a town right along Rt. 66 (The Mother R0ad). There was actually growth here in the 1930’s! Times were really good during the height of Rt. 66’s travel in the 50’s and even when I-40 opened in 1972, the town survived as many got off the exit to eat, shop and stay.

 

But today…businesses that survived the end of the Rt. 66 era and even the 70’s recession are closed. Large parts of this town are just shuttered…and Santa Rosa is not alone – the problem is everywhere – how are people going to work and support their families?

 

Charles Payne, who on Friday tweeted this…

 

“Disaster,” today’s jobs report probably the epitaph for the Obama administration-flaccid jobs growth for the most amazing economy in world.”

 

Also shared a chart that made me shudder…

http://alansills.com/work-with-al

 

 

 

Using this chart, I’d like to focus in on men and note two interesting trends:

 

Look at men aged 55+ and note that the “participation rate” (those who are in the workforce) has RISEN from about 40 to 46% in the past 20 years. My interpretation: Fewer boomers are retiring AND they have the skills and drive to go get a job. Have you seen the number of older people doing minimum wage work lately?

 

Now look at young men… age 16-24 – and this scares meTheir participation rate has dropped from 73 to 56% in the past 20 years. Put another way, in 1989, 27% of these young men were “terminally unemployed” – that is, not working and not looking for work. Twenty years later, that figure has GROWN from 27 to nearly 44%!

 

Look at Egypt and other nations where REVOLUTIONS have occurred…wasn’t it hoards of terminally unemployed young men whose hopes and dreams were shattered that were at the core of all the protesting and violence? (I want to emphasize…these thoughts are MINE; Charles did NOT say this in his post…so if you disagree with my premise, don’t blame him!)

 

This data signals me as a warning sign. Do YOU agree? Give me some feedback! (post below; share; like, etc…) AND, if you are saying “Al, what can I do?” Allow me to suggest this…

 

You know how airlines always tell you to put the oxygen mask on yourself FIRST before your kid? Know why they do that? You can’t help your kid if YOU passed out! So, if you don’t have your own “stuff” together, how can you help others – like some of those 16-24 yr old men?

Lets face it…our schools DO NOT teach entrepreneurship. They teach you to “get good grades, go to college and get a good job”. IS THAT STILL WORKING? Apparently for MANY the answer is NO!

Is there a solution? YES! Learn how to be in your own business – one that requires little (if any) capital investment. Get started, succeed, then help OTHERS (perhaps some of those disenfranchised from our work force) SUCCEED!

 

So…if you don’t have a solid plan for developing additional cash flow (INCOME), AND helping others… contact me!

 

http://alansills.com/work-with-al   <— click here

 

and LETS TALK. Allow me to help YOU and help you grow…then YOU can help others. And when you help enough folks get what THEY want, you’ll get what YOU want!

 

Have a great day!

 

 



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