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63
history as island rice-cultivators had set them apart from the rest of
humanity.
A decade of gloom has led some Japanese to give this implicit
belief a different twist. "We may be cultivators," a few reformists say,
"but it might not be so bad if we acted a little more like hunters." Al-
though their sense of uniqueness remains, however, the Japanese seem
to share at least one trait with readers everywhere: when times are
tough, it helps to laugh at someone else. One of the most popular books
in Japan now is "Stupid White Men", by Michael Moore, an American
author and film-maker. It dwells on corruption, injustice and electoral
shenanigans in the United States.
64
The Job Market. New Ideas Needed
Washington, DC
Why many Americans are staying out of work?
Few statistics are followed more closely in George Bush's White
House than the monthly jobs figures. In 1992, unemployment cost his
father the election; the son has presided over more than 2,5m job
losses. Small wonder that the White House jumped on the latest report,
released on October 3rd.
It showed that non-farm payrolls rose in September, the first rise
in eight months. At 57 000, the net number of new jobs created was
barely half the 125 000 or so needed to keep up with new entrants into
the labour force; but at least it was not a drop. Better still, August's job
loss number was revised down by more than half. "Things are getting
better," said Mr Bush.
Are they? One month of modest employment growth hardly
proves the end of "the jobless recovery". Nonetheless, there are reasons
for hope. One is that all of the increase in September's jobs came from
the private sector, much of it from a rise in the number of temporary
workers. The number of temporary jobs has risen for the fifth month in
a row.
Hiring more temporary workers often precedes a rise in perma-
nent jobs as economies emerge from recession. According to Richard
Berner, an economist at Morgan Stanley, America's firms have spent
the past two years trimming their workforces, after taking on too many
employees during the bubble years of the late 1990s. With the excess
cut out, and profit margins bigger, he reckons hiring should start again.
The pace of job growth, however, may well continue to lag be-
hind that of previous post-1945 recoveries. This is because America's
recent slowdown was no ordinary recession. Structural changes in
America's economy-such as technological innovation and moving pro-
duction abroad – have played a far bigger role than before in job losses.
Rather than temporarily laying off workers as demand slowed, firms
have been getting rid of them entirely. Those dismissed have to find
jobs in new firms and new industries, which takes much longer than
simply returning to an old employer.
history as island rice-cultivators had set them apart from the rest of The Job Market. New Ideas Needed
humanity.
A decade of gloom has led some Japanese to give this implicit Washington, DC
Why many Americans are staying out of work?
belief a different twist. "We may be cultivators," a few reformists say,
"but it might not be so bad if we acted a little more like hunters." Al- Few statistics are followed more closely in George Bush's White
though their sense of uniqueness remains, however, the Japanese seem House than the monthly jobs figures. In 1992, unemployment cost his
to share at least one trait with readers everywhere: when times are father the election; the son has presided over more than 2,5m job
tough, it helps to laugh at someone else. One of the most popular books losses. Small wonder that the White House jumped on the latest report,
in Japan now is "Stupid White Men", by Michael Moore, an American released on October 3rd.
author and film-maker. It dwells on corruption, injustice and electoral It showed that non-farm payrolls rose in September, the first rise
shenanigans in the United States. in eight months. At 57 000, the net number of new jobs created was
barely half the 125 000 or so needed to keep up with new entrants into
the labour force; but at least it was not a drop. Better still, August's job
loss number was revised down by more than half. "Things are getting
better," said Mr Bush.
Are they? One month of modest employment growth hardly
proves the end of "the jobless recovery". Nonetheless, there are reasons
for hope. One is that all of the increase in September's jobs came from
the private sector, much of it from a rise in the number of temporary
workers. The number of temporary jobs has risen for the fifth month in
a row.
Hiring more temporary workers often precedes a rise in perma-
nent jobs as economies emerge from recession. According to Richard
Berner, an economist at Morgan Stanley, America's firms have spent
the past two years trimming their workforces, after taking on too many
employees during the bubble years of the late 1990s. With the excess
cut out, and profit margins bigger, he reckons hiring should start again.
The pace of job growth, however, may well continue to lag be-
hind that of previous post-1945 recoveries. This is because America's
recent slowdown was no ordinary recession. Structural changes in
America's economy-such as technological innovation and moving pro-
duction abroad – have played a far bigger role than before in job losses.
Rather than temporarily laying off workers as demand slowed, firms
have been getting rid of them entirely. Those dismissed have to find
jobs in new firms and new industries, which takes much longer than
simply returning to an old employer.
63 64
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