Tuesday, April 12, 2016

Why The Unemployment Rate Means Nothing

Last week Schnuck Supermarkets in St. Louis announced that its new distribution center would be staffed by an outside logistics firm.  About 190 union workers will be discharged.  The logistics firm may well actually increase the number of workers at the distribution center, thus helping to lower the unemployment rate;  another reason for the Labor Secretary to boast about the number of net jobs created each month.

But the former workers earned between $14 and $22 an hour;  the new people will early between $10 and $11 an hour.  So more workers, less payroll.

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