What's Wrong With Very Low Unemployment?


#1

#2

Salaries don’t seem to be going up to mirror historic low unemployment.


#3

There’s also a record number of open jobs that aren’t filled. It’s over 6M. Some argue there’s a skills mismatch newteen what employers need and people have. I think that’s a good assessment.


#4

Solution: hire foreigners.


#5

Assuming that is true wouldn’t we see a spike in salaries? at least initially till more people acquire the skills necessary? I’m trying to figure out as to why isn’t that happening?


#6

Structural :slight_smile: unemployment can only be solved by training (government should incentivize businesses to employ fresh grads) and education (encourage students to take the relevant degree and unemployed to get enrichment classes). Getting foreigners will have backlash :wink: so is a solution but don’t get too many.


#7

Smart people are having too few children and dumb people are having too many kids. Education will not help. Need to import smart foreigners to balance out the dumb.


#8

Ain’t SWEs getting very high pay relative to all other graduates? A 4 year English Major in Stanford + 3 years of teacher college only earns $70k p.a. A fresh CS grad in Google earns $156k p.a. and quickly hits $300k-$500k after 5 years. The same teacher would be happy with $80k.

10 years ago, pay of SWEs ain’t that high. AFAIK, many out-of-state guys with relevant skills get 2-4 times their previous salary to come here.


#9
  • I’m not sure if the numbers quoted fall within the normal distribution curve of salaries even for SWEs(maybe normal for Google,FB) with 0-10 years experience.
  • 6M unfilled jobs are not the REALLY high paying jobs, my guess is REALLY high paying jobs are a minuscule of the 6M.

#10

Need some foreigners but the main reason why need so many is because tech companies have no new ideas. Everybody copying each other initiatives. I go music streaming, everybody go music streaming. I go autonomous vehicles, everybody go AV. I go cloud computing, everybody go cloud computing. So everybody wants the same set of guys. Those guys get highly paid, the rest screwed.


#11

There is a youtube video on this made by Google’s youtube :slight_smile: lead.

Of course not. Most probably because of different location and minimum wages type. Many minimum wage jobs in SV unfulfilled :slight_smile:


#12

will check it out later.


#13

You’ve missed this thread.


#14

If you check out Trulia or some other websites for Median household incomes in Mountainview or Cupertino, those numbers are pathetically low.


#15

My guess is

  1. due to renters
  2. Asian people disproportionately spent more of their savings in real estate purchase.

#16

Not talking of net income. These are gross figures.


#17

A lot of retirees in Cupertino. I notice many house rich income poor families.


#18

I think it is happening in small pockets (eg software engineering). However, there’s not enough software engineers to materially move the national average wage.

I agree the 6M aren’t all high paying, but the vast majority would be a step up for someone making at/near minimum wage. There should be more focus on helping those people climb up the career ladder to fill those open jobs. There’s so many people that only qualify for minimum wage jobs that there’s no upward pressure on those wages. I think that won’t happen until more and more of those workers up skill to better jobs which reduces the pool of minimum wage workers.

Can we trade? We export 1 for every 1 we import.


#19

Inspite of what the data says, there is a reason why people are angry and why people like Bernie Sanders or Trump are popular.

My guess is the data is not capturing what lot of legal US residents are going through.


#20

Unfortunately the dumb ones are here to stay. The smart ones will leave too if pasture is greener on the other side. Just look at what’s happened to India. Higher caste people leaving the nation in droves while the dumb ones got stuck in poverty with nowhere to go.