Jobs Don’t Equate Recovery To Business GDP
Numbers were recently released
for Oregon jobs on May 18, 2021 by State Economist Gail Krumenauer on jobs, states a monthly gain in employment in the government sector and in leisure and hospitality. She states a 59% return of jobs that were lost between February and April 2020.
How do these numbers look as far as they impact the GDP -- the value of goods and services provided in one year -- in Oregon? First the section of measured economy for Leisure and Hospitality is only 4.4 percent of our GDP. Oregon statistics also cite that regular unemployment received; 100% replacement wage as unemployed, but those in the leisure and hospitality trade received 134% of their wage. Ironically those best off under unemployment now have more jobs.
Government and government enterprises has a 25.68 GDP. Krumenauer reports 2,300 more jobs in government. What are those? Are they new regulators, like OSHA inspectors? Government regulates, it legislates, it does not create anything.
An example of what that GDP translates into: Agriculture, has a 13.2% or 50 billion of all Oregon sales. 10.6% or 22.9 billion of Oregon's net product and 13.8% of part time and full time jobs. This information from Agricultural statistics State of Oregon.
Now that your nearly asleep, why do all these numbers matter?
Jobs lost in Oregon; 46.9% were in the leisure or hospitality section. These were the highest paid under unemployment to the tune of 34% more. So, is a reduction in their unemployment really a win?
Industries still showing significant stress among those which are significantly affecting our GDP are manufacturing, metal machinery, wood, electric products, transportation and equipment, and other durables. These industries represent a large part of our GDP. They are all still underwater in April of 2021. Aerospace is in fact still going lower and timber or wood at levels of the 1920’s.
Reality is these numbers show that private enterprise is still suffering or still declining. These sectors actually produce products. The example of agriculture above shows that production enterprises filter down through several parts and layers of our economy.
Products equate to consumer spending. Consumer spending is the number one
biggest component of GDP or 2/3 of GDP.
|Post Date: 2021-06-01 07:05:54||Last Update: 2021-06-01 08:25:15|