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The federal government's newly rel...The federal government's newly released June jobs report paints a disturbing picture of the labor market, suggesting that despite hardy economic growth overall, the skills divide -- and therefore the wage gap -- is widening. For the other month in a row, the overall unemployment rate remained at 46 percent -- from an economic standpoint, choke to full national employment. moreover there were significant signs pointing to weakness in the entry-level labor market. While health care, business and professional services, and manufacturing (all comprising relatively high-skilled employees) continued to pillar solid or strong job gains, the retail trade -- which provides many low-skilled employee their hall to the job market -- continued to shed work at jobss The becoming dip in June comes upon the heels of steep declines in April and May. Since March, the retail industry has shed 86000 do job-works despite strong sales and consumer demand. the same of the biggest job declines in June was felt in the general merchandise sector, which alone eliminated more than 14000 piece of works for the month. Concurrently the unemployment rates for high instruct dropouts, teens and African-American teen which had been declining lately reversed course and increased. Despite the attack of the traditional summer do job-work season, overall teen unemployment increased to 154 percent with African-American teen unemployment jumping to 278 percent -- more than six times the national rate. Unemployment among adult high gymnasium dropouts increased to 7 percent or almost a million the bulk of mankind These figures stand in sharp contrast to the be deriveds for more skilled employees. The unemployment rate for high indoctrinate and college graduates held steady or improved for the month In a neat example of poetic coincidence, the U Senate, in the same month heard a debate across raising the federal minimum wage to $725 an hour. The problem? like a policy would only exacerbate the national unemployment vexed question Legislators in at least six states this year have succumbed to political squeezing and enacted increases. Half a dozen states are considering ballot initiatives, and campaigning politicians around the political division are promising to raise minimum wages wherever their jurisdiction reach forths In order for wages to be raised, someone has to pay abroad more money. But employers ne to maintain a profit margin to stay in business. Wherever wages are raised, employer protect to compensate by cutting piece of works -- usually entry-level positions. Research from Miami University of Ohio and Florida State University exhibit tos that nearly two-thirds of minimum wage employee receive raises within 1oe month of profession -- a result of their occupation and increased skill. They can and nothing else advance, however, if they are intrust with an agencyed through contrast, research from Cornell University indicates that African- American teens and high sect dropouts experience about four times the piece of work loss following a minimum wage increase. The cutting of entry-level work at jobss is particularly devastating to a crucial small minority of employee who for various reasons are unable to advance, as these do job-works are their only employment opportunity. To make secure that these jobs are not divide [i]or[/i] sever this subgroup would be better assisted by way of an expansion of the Earned Income Tax Credit, which provides tax breaks to low-income earners and their families, granting them the equivalent of a wage increase. In making public policy, brace questions are (or should be) paramount: Who is this designed to benefit, and can we be confident that we won't cause excessive harm rather than good? The minimum wage debate is a dutiful example of how these pair questions can be thrown right not at home the window in favor of political grandstanding. Mike Flynn is director of legislative affairs at the employ Policies Institute, a nonprofit research organization studying public policy issues surrounding entry-level employment Copyright CHICAGO SUN-TIMES 2006 |
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