U.S. values profits over jobs

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WASHINGTON-the United States is out of step with the rest of the world's richest industrial: its economy is growing faster than yours is to create but much less jobs.

The reason is that U.S. workers have productive, that it is more difficult for anyone without a job, to get one.

Produce companies and more than than the recession started to benefit despite fewer workers. You are again setting, but not quickly replace enough to most of the 7.5 million jobs lost since the recession began.

According measured in growth, the American economy has by United Kingdom, France, Germany, Italy and Japan exceeded - each group 7 developed nation other than Canada, the associated press to new global economy Tracker, a quarterly analysis of 22 countries, more than 80 percent of worldwide represents.

Yet the US job market of the Group remains most vulnerable. U.S. employment bottomed out and began to grow again a year ago, but there are still American jobs 5.4 per cent less than in December 2007. This is a much sharper drop than in any other country of the G-7. The United States had the G-7 second highest unemployment rate as December.

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Canada and Germany have actually added jobs since the recession ended in June 2009.

US companies are not the kind and be way that expected economists.

In the past, when the US economy into a recession, companies jobs typically cut but often more than they needed held. Some may be from their personal protective felt have. Or wanted to not risk professionals, they would need, as soon as business rebounded.

Between the producers, for example, some tend to workers during downturn hoarding, by make-work orders - sweep these factory buildings, warehouses, painting include.

The result is that productivity - output per worker - usually slow has become or even fall has left, as the economy weakened.

Japan and Europe have followed the script. In the depth of the recession in 2009, productivity declined 3.7 percent in Japan and 2.2 per cent in Europe.

The exception was the United States. US productivity growth doubled 2010 from 2008 to 2009, then again doubled in accordance with the Organization for economic cooperation and development.

'Weeding of the most vulnerable workers'
Panicked by the financial crisis of 2008 and deepening recession, cut U.S. employers jobs Unforgiven. You cut average 780,000 jobs per month in the January-March quarter of 2009.

"My feeling is, there more weeding of the most vulnerable workers - who wanted them not," says Harvard Economist Kenneth Rogoff.

To reduce the wage and payroll, many companies they found, only so much with fewer workers could produce. And higher productivity came with the increased profits. U.S. corporate earnings were 12 percent more than the recession started from July-September quarter 2010.

On the other hand, 6 per cent in Japan and 16 percent in Canada of the October-December quarter 2007 declined the profits according to Haver analytics.

Reading, PA moved Remcon plastics quickly once sales evaporated in the fall of 2008.

"I have my business so quiet, you go never seen", says Peter Connors, founder of the company, the pharmaceutical equipment makes. "I realized that business was not for a while be strong."

So he put out 25 temporary workers. And he has his 50 full-time employees on a three-day week.

Remcon roof as it did business - restructuring work, such as so employees do not have, so far to go to do their tasks. A plastic part that once made of six workers now need three. It can be produced more quickly.

"So even as demand came back, we could wait, add to people," says Connors.

Japanese, European and Canadian companies are less inclined to delete employees. Aggressive dismissal of hold their customs, labour regulations and trade unions.

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US management practices "employers to avoid fixed jobs, facilitate" says economist Erica Dimes, a Vice President at the Federal Reserve Bank of New York. "they have temporarily help that they can easily rent." "You are limited practices or union than by traditional human resources contracts."

Less than 12 percent of American workers belong to trade unions, which provide some protection against job cuts. This is the fourth lowest union participation rate among 31 countries of the OECD tracks.

"If it will pressure to cut costs in the United States, of the workers, born", says Howard Rosen, visiting fellow at the Peterson Institute for international economics. "In Europe, it is worn differently."

In Germany, unemployment less now than before the recession. To limit layoffs, German companies spread the pain by reducing the employee hours.

"Japanese companies it took upon himself to paint the factory - do more things, people on the payroll, held," says Gary Burtless, senior fellow in economics at the Brookings Institution.

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This helps explain why Japan's unemployment rate among the G-7 countries was the lowest in December with only 4.9 per cent although it can rise up to the earthquake and nuclear disaster, the Japan's northeastern coast taken.

The United States says "at the other end of the spectrum" Carl Van Horn, Director of the John j. Heldrich Center for workforce development at Rutgers University.

"Everything is... inclined in favour of the employer the employee has no leverage." If your boss says "I will get you in the next two Saturdays," what are you saying - no? "

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