Today the California Employment Development Department (EDD) released job estimates for May 2016. Latest figures released by the Bureau of Labor Statistics and California Employment Development Department show national job growth at its lowest level since 2010, though the state and region continue to grow at a reasonable pace, with Bay Area growth continuing to outpace the nation and state by a significant margin. The disappointing national figures for May led policymakers at the Federal Reserve to signal a pause in plans to raise interest rates.
We are seeing continued progress in technological innovation, yet anemic productivity growth. A big reason is that public and private investment have fallen in the last decade. It’s time for serious pro-investment policies.
So why have we not seen the strong productivity growth we need? As explained in the recent ITIF e-book Think Like an Enterprise: Why Nations Need Comprehensive Productivity Strategies, there is solid research suggesting that the slowdown is not a cyclical phenomenon, nor is it because we are measuring output incorrectly.
Now researchers, politicians and business leaders are coming forward with strategies to accelerate job gains and investment in manufacturing. Their ideas range from pruning regulations that raise the cost and effort of running a manufacturing operation to imposing a value-added tax on imports to beefing up training programs so companies have an easier time finding skilled workers. Reviving the manufacturing sector won’t be easy -- but, these advocates argue, it’s crucial.
According to a new study by the Pew Research Center, men and women between the ages of 18 and 34 are now more likely to be living with their parents than living on their own or in any other living situation [such as sharing an apartment]. This is the first time in American history that young people -- 32.1 percent of millennials -- have been most likely to live with their parents.
On Wednesday, the department's International Trade Administration, which has conducted an investigation into the "dumping" of steel products into U.S. markets, said it had found the "dumping of imports of corrosive-resistant steel (CORE) products from China, India, Italy, Korea and Taiwan" by various steel producers that it named within those countries.
Manufacturing may be facing some headwinds, but it’s undeniably in the midst of a technological renaissance that is transforming the look, systems, and processes of the modern factory. Despite the risks -- and despite recent history -- industrial manufacturing companies cannot afford to ignore these advances. By embracing them now, they can improve productivity in their own plants, compete against rivals, and maintain an edge with customers who are seeking their own gains from innovation.
“Today, high-speed Internet is the backbone for 21st century economic growth in the digital economy,” said Rick Boucher, a former Democratic congressman who chaired the Energy and Commerce Subcommittee on Communications and the Internet and now serves as honorary chairman of the IIA. “Unnecessary price regulation in competitive broadband markets will have far-reaching negative impacts on U.S. economic growth and development.
A robust and innovative start-up sector is key to sustainable economic growth. For innovation to occur, however, enterprises must have both the incentive and the capacity to invest. Incentives are multi-faceted and heavily reliant on the overall investment climate. Capacity depends on the education level of employees and management, their experience in rapid adaptation of products and processes, and their access to funds for R&D and commercialization.
The United States steel industry is experiencing the greatest crisis in its history due to record import surges and cheap steel that is flooding global markets from Chinese state-owned and subsidized companies. The result is a steep loss of U.S. production capacity along with thousands of jobs. The impact, as described using the terms by those in the industry, has been "devastating" with long-term "severe" economic consequences for the United States.