08/10/2018

The Market Is “Banning The Box”

Aaron M. Renn, City Journal

The American economic expansion is finally accomplishing one of the country’s most needed social improvements: getting the long-term unemployed reattached to the labor market. Income inequality gets much of the press today, but as Harvard economist and Manhattan Institute senior fellow Ed Glaeser points out, long-term joblessness is the more serious problem. The unemployed face a heightened risk of serious ills ranging from physical maladies and mental health problems to divorce.

Rising long-term joblessness, particularly among prime, working-age men (25 to 54), has been a corrosive trend. A Kansas City Federal Reserve study found that the number of men in that key demographic not in the labor force increased from 4.6 million in 2006 to 7.1 million in 2016. We’re now seeing early signs that this trend may be reversing. Reports describe how a tightening labor market is finally tearing down employer-erected barriers to hiring. The Wall Street Journalrecently noted, for example, that firms are increasingly adopting a “no experience required” policy to try to fill jobs, even eliminating the requirement for a college degree in some cases.

Up to now, observers had pointed to the rise in state-mandated occupational licensing as a factor in slow economic growth. Without help from government, though, the private sector itself had become prey to creeping credentialism. Online job postings frequently include a long list of detailed requirements, with most applicants summarily rejected by algorithms or offshore résumé reviewers. Nearly two decades of a recessionary or anemic jobs economy allowed companies to become prima donnas of hiring, and a generation of human resources and hiring managers were marinated in this environment.

Now marketplace discipline is forcing them to change. Anything that reduces an unhealthy fixation on the length of a CV is positive for economic dynamism. The marketplace is also helping those who found themselves with situations that previously rendered them all but unemployable. Anyone with an employment gap was effectively exiled from the job market, for example. Someone who fell prey to drugs but then conquered addiction, or who simply had a run of bad luck, found it all but impossible to get a foot back on the job ladder. People with other negatives—such as criminal records—had it even worse.

Read full article



You May Also Like:

The Mainstreaming Of Political Fanaticism Bill Wirtz, FEE

Beto O’Rourke: ‘A Lot Of Wisdom’ In Abolishing Electoral College Pam Key, Breitbart

Are Unions Exploiting Their Employees? Editorial Board, The Wall Street Journal

‘Hate’ Hustlers The Editors, National Review

This Opinion Just In… Baby It’s Cold Outside Deroy Murdock, The American Spectator

Raise Your Own Damn Taxes! Charlie Martin, PJ Media

Ocasio-Cortez Accuses America Of “Legitimizing Bigotry” For Her Falling Poll Numbers Brandon Morse, RedState

AOC Quietly Dropped From PAC Leadership Amid Legal Questions Alana Goodman, Washington Examiner

For More go to the Home Page >>>

Join Our Email List



section

Bookshelf

FreeMarket Central

Some titles recent, all recommended -

Special Video Feature

FreeMarket Central

Voices From The 2017 International Students For Liberty Conference

section

In Search Of History

The Fed vs. the Middle Class

With interest rates flattened [by the Federal Reserve], government zeroes out the future. Abandoned were 80 percent of private defined-benefit pension plans. Public plans faced a similar evisceration in the future. With no acknowledgement, the U.S. government had casually dispossessed the American middle class of its retirement assets and pushed millions of Americans into acute dependency on government programs. ... Government dependency negated the American dream.

-- George Gilder ,

Shadow Stats Snapshot


FreeMarket Central

ShadowStats alternate economic indicators are based on the methodology of noted economist John Williams, specialist in government economic reporting.

  • Unemployment:
    FreeMarket Central BLS: 4.05%
    FreeMarket Central Shadow Stats: 21.5%
  • Inflation:
    FreeMarket Central February Year-to-Year: 2.87% (CPI-U*)
    FreeMarket Central Shadow Stats: 9.9%

*[cpi-u is the Bureau of Labor Statistics inflation rate for all urban consumers]

section