Q&A – Baseball, Jobs and Money
Each day I’ll feature a listener question that’s been submitted by one of these methods.
Facebook: Brian Mudd https://www.facebook.com/brian.mudd1
Hey Brian, 3 things regarding Cooperstown
1. We have our 12 year old here this week to play in Dream’s Park. I know you are a baseball guy, so can appreciate that this will be an experience of a lifetime for him and probably for my wife and I as well.
2. We drove up and I used I-Heart Radio to listen to you. It was the first time I had traveled using the app through my car speakers. Pretty cool.
3. Here in Cooperstown there are signs everywhere for help wanted. The restaurant I am at told me they do not have enough staff. Is the economy too good? Is there such a thing? Labor rates will either go up or service will suffer.
Enjoy your week. I know I will enjoy mine.
Bottom Line: How cool. Congrats to your son! About your question as to if the economy is too good? There’s a clear-cut answer right now and that’s not always the case. Nope, the economy isn’t overdone at this point. And yes, the experience of the local restaurant is representative of a bigger trend. The simplest explanation I can offer up to explain why the economy isn’t overdone. Inflation isn’t an issue. In fact, if we could keep the status quo rolling, we’d likely have the perfect economy.
Last month we hit the lowest unemployment rate since 1969 at 3.6%. But here’s the thing. Inflation was at 5.5% in 1969. That means you had to make 5.5% more just to keep up with the rising cost of life due to inflation. Today, with unemployment at 3.6% - we’re far better off. The current inflation rate is right at 2%. That’s below average. So, we have a combination of low inflation and historically low unemployment. It doesn’t get much better. That’s especially true when you factor in wage growth. The average person is making 3.2% more than a year ago. That means the average American’s buying power and quality of life is improving. In fact, we’ve never had a record of unemployment as low as this, with inflation as low as this, with wages rising as much as they are... Pretty much perfect. About the restaurant.
Much of the last year we’ve seen small businesses struggle to find the employees they need. The combination of job opportunity, benefits and career upside are very real challenges for smaller companies in this environment. This is where creativity and flexibility may need to come into play. Many companies, including local businesses, raised their hiring standards during the recession because they could. In today’s tight jobs market, these companies may need to revisit the hiring process and be a little more accepting of those whom they may not have considered previously. There are still 7+ million Americans out of work. Many of them are just looking for second chances and opportunity.
Back to baseball... I hope you and your family enjoy every minute of the experience!