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A job is born: The link between growth and work

Job seekers meet meet potential employers at a career fair on April 18, 2013 at the Holiday Inn in Midtown in New York City.

Numbers out Friday show 162,000 jobs were created last month, a bit less than expected. And America’s overall unemployment rate fell slightly to 7.4 percent. Earlier this week, we learned the economy is growing at 1.7 percent. To make a real dent in the jobless rate, the GDP needs to expand a lot faster.

“We need to see the economy really grow better than 3 percent, ideally 4 percent, in order for us to see a substantial pickup in hiring,” says Bernard Baumohl, chief global economist at The Economic Outlook Group.

With that kind of expansion, he says today’s job creation number could double.

It’s one thing to talk nationwide numbers. But in tiny Springville, N.Y., near Buffalo, we get a peek into the manger as one job is born from economic growth.

Some of that growth is being felt at car dealerships. Several lots in the region bear Carl Emerling’s name. Buyers are back.

“They’re looking to get rid of their older cars because they’re more confident,” Emerling explains. “They’re not afraid of getting laid off next week.”

There’s also growth at Mark's Country Store.

“Business has been steadily increasing,” says owner Mark Meyer, who had only a moment to talk because the store was full of customers. “Sales have been going up the last couple of years.”

Both businessmen say they’re advertising more. And that is how a new job is born.

“We’re hiring a new staff reporter who will work about 30 hours a week,” says proud parent Lizz Schumer, editor of Springville Journal.

With more ads, her weekly paper needs more stories. Though large and midsized papers are struggling, small regional papers like hers have quietly been doing well recently. Schumer is optimistic that ad revenues will continue to increase. She would like to make that new job full-time and hopefully hire more people in the future.

Multiply the story behind that job by about a quarter million, every month, and we’ll have a real recovery.

Kai Ryssdal: The American economy is a big and cumbersome beast. Lots of moving parts. Nothing happens without affecting something else. It's all just...connected.

Take this week. Yes, we learned this morning the unemployment rate dropped to 7.4 percent, but we only added a dis-satisfying 162,000 jobs. You roll that in with the anemic economic growth rate of 1.7 percent we found out about on Wednesday, and whaddya get? An economy that can't get out of its own way. Marketplace's Mark Garrison explains the jobs growth conundrum.


 

Mark Garrison: To make a real dent in the jobless rate, the GDP needs to expand a lot faster. Bernard Baumohl  is with Economic Outlook Group.

Bernard Baumohl: We need to see the economy really grow better than 3 percent, ideally 4 percent, in order for us to see a substantial pickup in hiring.

With that kind of growth, he says today’s job number could double. It’s one thing to talk nationwide numbers. But in tiny Springville, New York, near Buffalo, we get a peek into the manger as one job is born from economic growth. First, the growth. Several car dealerships in the region bear Carl Emerling’s name. He says buyers are back.

Carl Emerling: They’re looking to get rid of their older cars because they’re more confident. They’re not afraid of getting laid off next week.

There’s also growth at Mark's Country Store. Owner Mark Meyer only had a moment because the place was full.

Mark Meyer: Business has been steadily increasing. Sales have been going up the last couple of years.

So they’re both advertising more. And that is how a new job is born.

Lizz Schumer: We’re hiring a new staff reporter who will work about 30 hours a week.

Proud parent Lizz Schumer is editor of Springville Journal. With more ads, her weekly paper needs more stories. She wants to make that new job full-time.

Schumer: Were we to further expand, with more advertisers, then we would be able to bump up that reporter or add another reporter to help us do that extra work.

Multiply that job by about a quarter million, every month, and we’ve got a real recovery. In New York, I'm Mark Garrison, for Marketplace.

About the author

Mark Garrison is a reporter for Marketplace and substitute host for the Marketplace Morning Report, based in New York.
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The last I checked a 30 hour a week job is not full time. The reporter was likely hired at 30 hours so the employer wouldn't have to pay benefits. So what are you left with at the end of this? Another underemployed member of the middle class without health care. source: http://www.laan-info.dk/

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What this Polyannaish story glosses over is the fact that this is not the birth of one job but the birth of 3/4 of a job. The last I checked a 30 hour a week job is not full time. The reporter was likely hired at 30 hours so the employer wouldn't have to pay benefits. So what are you left with at the end of this? Another underemployed member of the middle class without health care. "Multiply this by about a quarter million ever month" . . . and you have the middle class sliding deeper into the abyss.

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