Filed under: Bureaucracy, Capitalism, Democrat Corruption, Economy, Free Markets, Freedom, Intelligence, Media Bias, Politics, Progressives, Regulation, The United States | Tags: Doesn't Understand Business, Hiring Dropped Sharply, Obama's Overtime Rules
Government data released last Wednesday showed the number of private- sector job opening was at an all time high in April. But the companies doing the hiring took on the smallest number of people on a seasonally adjusted basis in nine months. What?
The JOLTS (Job Openings and Labor Turnover Survey) data the government released showed there were 5,2809,000 private-sector job openings in April — 114,000 more than in March. The government report also showed that private-sector hires declined by 169,000 compared to March. Well no wonder eyes glaze over when reading government press releases.
With the private companies advertising so many job openings, why aren’t they filling the openings? The federal government has imposed vastly higher costs for employing people. It is not only more expensive, but it is more complicated as well.
President Obama’s new overtime rule was meant to help workers. Unfortunately too many government people have never worked in the private sector. The government’s new rule effectively turns millions of salaried workers into hourly employees. It won’t increase their earnings, but it will reduce their control over their schedules. Salaried employees get paid to do a job. Hourly workers must be paid overtime for working over 40 hours a week. What happens in real life is that in order to avoid lawsuits to overtime-eligible workers, many employers deny flexible work schedules to them, because it is a big legal risk. Hourly workers are more unlikely to move up to salaried positions. On Wednesday the government raised the overtime “threshold” test for salaried employees to $47,500 a year. All salaried employees making less than that, no matter how advanced their job duties, now qualify for overtime. The Feds just thought they would give workers more pay by making more of them overtime eligible.
When Leftists are in charge of the economy, they usually make a mess of it. They assume that being “the best and the brightest”, their ideas are better but often they are simply transplants from academe who are entirely unfamiliar with business and how it operates. They have spent years envying the captains of industry who make unbelievable amounts of money, and they don’t even have PhD’s. What leftist academics fail to recognize is that the average term of a CEO is only 6 or 7 years, and they got there on the record of lots of successes. A CEO of a major corporation may oversee 20 divisions of 2o,ooo people each, and he has to report to the shareholders every quarter. Silly academics can’t even tell protesting kids to knock it off.
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