The Missing Link between the Labour Market and Prosperity in USA: Lack of Permanent Jobs
https://www.rozen-bakher.com/timeline-risks/06/05/2022/1453
Published Date: 06 May 2022 at 14:53.
Risks Timeline by Dr. Ziva Rozen-Bakher
Comments on Contemporary Risks by Dr. Ziva Rozen-Bakher
Risks Timeline by Dr. Ziva Rozen-Bakher: https://www.rozen-bakher.com/timeline-risks-all
Dr. Ziva Rozen-Bakher
A Researcher in International Relations/International Business with a speciality in Risks for Foreign Direct Investment (FDI), International Trade, and Mergers and Acquisitions (M&As) in relation to Security Risks, Political Risks, Economic Risks, and Strategic Risks
06 May 2022 at 14:53. My PhD dissertation deals with the impact of FDI on various location factors and their implications for labour markets, so risks related to labour markets are close to my heart. When we look at the USA labour market, we need to look in-depth at the numbers beyond the total new jobs because in the USA, on contrary to Europe, most of the new jobs in the last years are part-time and temporary ones. Even universities in the USA hire professors for 8-9 months, while they fire them during the summer period. Thereby, under this mechanism, it’s very difficult for the working class to have extra income for consumption beyond food and must products, and obviously, they have no ability to create savings. This situation gets worse if the retirement age increases because of the aging due to the wish of the social security to pay less for pensions by increasing the retirement age, so in the USA, the retirement age is higher than in Europe, and they even have a late retirement age. So, what is the risk? I wrote about it in my published paper below, but to make the story short, in a labour market like in the USA, the young generation suffers from a lack of available jobs, so they must compromise on part-time jobs and temporary jobs, and because of that, they have even a problem to pay their study loans. I call for this inherent risk in the aging era, a ‘Short Blanket of labour market’ because if you raise the retirement age, then the younger suffer, while if you reduce the retirement age, then the older generation suffers because they have no enough income for a long retirement, so either way, we have a big problem in labour markets like the USA that lacks sufficient pension for long retirement because of the no-permanent jobs. The risk of ‘Short Blanket of labour market’ will increase over the years, and it’s already hit the USA.
Rozen-Bakher, Z. (2020). The Raising of the Normal Retirement Age (NRA) in the Aging Era in the Advanced Countries: The Dilemma between Securing the Stability of the Pension System versus the Risk of Increasing Unemployment. Policy Studies, 41(6), 641-662. https://doi.org/10.1080/01442872.2018.1554805.
Conceptual Model of ‘Short Blanket of Labour Market’, Rozen-Bakher, Z
Source: Rozen-Bakher, Z. (2020). The Raising of the Normal Retirement Age (NRA) in the Aging Era in the Advanced Countries: The Dilemma between Securing the Stability of the Pension System versus the Risk of Increasing Unemployment. Policy Studies, 41(6), 641-662. https://doi.org/10.1080/01442872.2018.1554805.
