Transcripts For ALJAZAM Real Money With Ali Velshi 20140502

ALJAZAM Real Money With Ali Velshi May 2, 2014

This is real money, you are the most important part of the show so tell me what is on your mind tweet me or go to facebook. I do read this stuff. The economy added 288,000 new jobs in april most of them came from the private sector. Economists hope for 150 or 200,000 new jobs to get added every month just to keep up with new entrants to the job market. So the fact that we overshot that in april is really good news, and april has been a big acceleration from the prior months. Another positive the number of longterm unemployed came down in april by 287,000. Now i always say ignore the Unemployment Rate unless its convenient for me to help tell a story. Focus instead on that, the number of jobs added every month. In april the rate dropped. 4 of a percentage point the lowest in 5. 5 years. Over the last 12 months the Unemployment Rate has come down 2. 2 Percentage Points and the number of people counted as unemployed has come down by 1. 9 million. Even so, the jobs picture in america isnt all rosy. 9. 1 Million People remain jobless in this country, people actively looking for work, but they are unable to land a job for forever reason. And that doesnt count the number of people falling out of the labor force. People that stopped actively looking for work last month. Many analysts warn that a good chunk of those people not in the work force may not get back in. For more on this, we have got this part from patricia sabga. Reporter not all workingage americans are considered part of the work force. You must either have a job or be actively looking for one. Thats how the u. S. Bureau of labor statistics calculates the Labor Force Participation rate and where it stands casts a dark shadow over aprils fiveyear low Unemployment Rate of 6. 3 . In april more than 800,000 americans left the work force, bringing the Labor Force Participation rate to 62. 8 , thats the same level as december when it hit a 35year low. Labor force participation has tanked in the wake of the Great Recession, falling more than 2 Percentage Points between october 2009 and december of last year. Economists at the Federal Reserve bank of philadelphia attribute 30 of that drop to discouraged job seekers giving up the hunth. From 2012 onward 80 of the drop was down to baby boomers retiring. Aprils decline was a sharp fall. That suggests that Congress Cutting off emergency Unemployment Compensation has driven hundreds of thousands of people out of the labor market, and they be lost to us for good. Reporter but if the economy keeps adding jobs at the pace it did in april, it could get the unemployed to try to find work again. This jobs report that shows that almost 300,000 jobs have been created may lure people back into the labor market. Reporter patricia sabga, al jazeera, new york. All right. The Unemployment Rate fell, but working americans did not on average earn more money. Average Hourly Earnings did not budge last month. And over the last year the number is up just 1. 9 . Now while that is just ahead of inflation, it is not enough to keep the economy growing the way we want to. Thats the view of this economist at the university of california berkeley, she joins me now from campus to pour some cold water on this employment report. We have to be fair, were not cheer leaders for an economic report. There is a lot of good in this economic report, why it is problem mattic to you that we are not seeing greater wage growth . Well, i think theres you summed up the report very well, and let me add one one bit of information on jobs first, and thats to put this in the longreturn perspective, we lost 8. 5 million jobs during the recession. It took about two years to lose those jobs. With this report, with five years of job growth, we just got back to where we were in december of 2007 when the Great Recession took hold. We just this month got back to exactly where we were. We are on net now, just about 210,000 jobs above where we were in december of 2007. And in fairness we have since that time gained more people who have come into the work force, people who immigrated, people who have come of working age. So good statistic, but we were set back quite a bit. Its like you said we need 125, 150,000 a month to keep things even. So were five years into the recovery, wow thats a lot of people who should have been coming millions into the labor force. So its great news that its 288,000 and it has ticked up like you said, but we are a long way from full employment in this economy, which gets back to your question of wages, and wage growth as you mentioned over the last 12 months is about 1. 9 , probably just a couple of tens of 1 above inflation, because were talking nominal, so if you talk about real wage growth, its very minimal so i guess the question is probably falling further and further behind. Typical workers havent had much of an increase in real earnings for the last 35 years. So on this side of the Great Recession we have more of the same that was happening going into the Great Recession. And all of the statistics are showing most of the benefits going to the top 1 . That means the average worker isnt getting much. Now that we are seeing we have gotten back to where we were. We have to look a little deeper and say those jobs created are not the same quality as the jobs that have been lost. As you mentioned this has been a longterm trend in america. It has been a longterm trend. Again, the statistics show that lowwage workers make less than their counterparts did 35 years ago, and the average typical worker is maybe making a dollar or two more than their counterparts were all that time ago. It really, you know, it really factors in to this whole discussion of inequality. The economic has gotten much richer, but workers simply are not getting their fair share and coming out of this Great Recession things havent gotten any better, and they quite possibly are getting worse. Is the lost of labor has it come down because of global pressures . It does seem the sum total that we may pay people to work has gone down. Is that fixable . Well, sure. These are all policies. All of these outcomes have to do with globalization, for instance, those are trade policies that we decided we should pursue that had these very detrimental effects for our workers. And now were talking about another one, the tpp. Which we know the outcome of nafta and other trade policies, and now were pursuing another trade policy. I really believe that a lot of this inequality and a lot of the fact that workers cant get ahead is really policy driven inequality when it comes to the declining union, trade policy, when it comes to minimum wages that are lower today than they were 50 years ago, and we cant seem to get them past. Just the other day the republicans voted down taking the minimum wage up to 10. 10. These are all policies that could help, but we have pursued policies that are really hampering the average American Worker to getting ahead these days. The tpp is the transpacific partnership. Cilia thank you for being with us. Thanks, alley. If you have the skills i have a boss hiring right now. Plus properties for sell, take a look, the owners are anxious to sell, and they are not alone. That story and more coming up. Keep it right here. Results of analyses were skewed in favor of the prosecution the fbi cant force the states to look at those cases the truth will set you free yeah. Dont kid yourself the system has failed me just when you thought i couldnt talk about jobs anymore come on its jobs day the u. S. Economy added 32,000 new construction jobs in april. Almost double the number seen in march. One South Carolina home builder said the number would have been higher if there would have been enough skilled workers available. This home builder expects to build 200 homes this year. He says he is also competing with big names that are offering permanent jobs with benefits and he cannot hire fast enough. Wade you are a man in demand, but you need people. Tell me your story. Well, its Pretty Simple in our industry people moved away. They got tired of the cycles of construction being up and down, and South Carolina is a right to work state, we brought amazon, boeing and other companies in here, and they are offering jobs with benefits. Wages arent as high as construction, but they got tired of construction and moved away. So you are suffering from the idea that you happen to be in an area where not only is construction booming but so are a lot of other things that compete for your workers. This absolutely. Yeah, we have a healthy economy here in South Carolina, we have grown since the middle of 2011, and its everything we can do to attract workers locally and from other states for jobs. What kind of workers are now looking for and what is the pay benefits that come go with it . When we talk about trade partners and need for workers, we need attorneys, brokers, realtors, guys that can swing hammers, guys that can put shingles on, it goes the gambit. You didnt think about all of the backdrop it takes to get something built. And there are jobs at every level. Half of the jobs are created by people who are creating product for our product. So there is a shortage all the way around. But in your particular case, what do you need . Right now we need labor. We need people to do framing, concrete work, plumbing, electrical, hael heating and ai. We have Seasonal Workers that coming in and out of North Carolina and that is getting more difficult with the regulations that have been put on us. We lost somewhere between a million and 800,000 jobs in the housi housing collapse. Do you think those people have moved on to other work . Really the skilled labor, our Business Cycles every ten years and it just seemed like this sickle obviously was deeper and longer than a lot of people anticipated, and families got tired of the cycles and the workers had an opportunity to go to places like amazon and boeing, and we lost a lot of or work programs. There are not a lot of apprentice programs. You dont have your local colleges doing Training Like they used to. These kids are either on a College Track for a job not related to construction, or there is nobody coming in to replace the basic skilled laborer in the construction business. Wade thank you for joining us tonight. We appreciate the voice. Thank you. The ceo of mcginn homes from North Carolina. Right now there are about 4 million job openings in america, and some businesses like wade say they cant find enough people with the skills they need. Others are getting creative and looking at people with autism. About 40 of these folks have above average intellectual abilities. Sap the words Third Largest Software Company is looking at people on all levels of the autistic community. Sap thinks hiring autistic people is good for business. David shuster has the story. Good morning, everyone. Reporter today patrick is making one of his first presentations to managers at sap. He is showing them a robot he has programmed to perform tasks using light sen source part of his training for saps autism at work initiative. There we go. Reporter patrick has aspergers a disorder on the autism spectrum characterized by significant difficulties on the social spectrum. Interviews are tough enough but its even worse when you dont necessarily know the person or you may come off as too monotone or too shift or you are not as relaxed as they would like. Reporter patrick graduated from college in 2011 but says because of his disability he has not been able to secure a job. He is hoping that will change at sap. He is one of 30 people on the autism spectrum taking part in saps pilot starting up this year. They have already begun hiring autistic workers in several countries. By 2020 it hopes to have 650 people with autism on its payroll. We have a tremendous need for. Programmers. Reporter jose valuestco runs the program, he says sap sees great competitive value in hiring these employees. We are looking for people who have the ability to concentrate on tasks for a long period of time. In some cases do tasks that for other people may be considered competitive, but which is of very high importance for us. Sap is not alone. Walgreens has a Distribution Center with 40 of its work force having a disability many with autism. Many vacant jobs more and morin senttives for employers to include people with disabilities in the work force. Reporter this mans son runs an International Consulting term that helps people hire employees with autism. He says he is also in talks with big pharmaceutical, health companies, and National Banks to do the same. The global goal is to enable 1 million jobs through partnerships and knowledge. Reporter however, people with autism have real challenges. They can be extra sensitive to noise, bright lighting and the normal stresses that come to a fulltime career. Taking these things into account means extra training for autistic workers. Training not only for the participants but also for Managers Team members and other employees. There will be additional expenses and time and energy spent getting this up and running. Reporter many businesses are also concerned about Higher Health care cost and liability, but velestco says sap considers its an app investment that will pay off for the company in the long term. By 2020 we will have an onbooring equivalency of a normal person where it makes in difference in onboarding one or the other into the company. Reporter but will it work and will the money spent on the front end really pay off. Jim is watching saps grangd experiment with great interest. In the longer run there are many reasons to believe that this is going to be a real gold mine. Reporter patrick is on track to work at sap perhaps as a software tester, but he has his sights set on a different career. I hope to be able to expand and use my background in communications to go into marketing or even consulting with various clients. Reporter david shuster, al jazeera. Patrick the guy on the right has aspergers syndrome which means he requires less support than some other people at a different part of the autism spectrum. But sap is looking at other people with autism. And they will all be paid the same salary as their colleagues. Its an issue that strikes close to home for both guys who run the program at sap because they both have children with autism. Coming up ill talk about what some are doing to solve the lack of doctors. I have learned a lot about real estate. And is this current market a blessing . It is a blessing. More on how churches like his are looking to sell. You are watching real money. Keep it right here. Real reporting that brings you the world. Giving you a real global perspective like no other can. Real reporting from around the world. This is what we do. Al jazeera america. The United States got a brutal reminder this week of the terrible damage that tornados inflict on people and communities that stand in their path. Tornados pummelled the midwest and south destroying or damaging thousands of homes and building, some three dozen people lost their lives. Among the worst hit was mississippi and the town of louisville, where these pictures were shot. No estimates yet of the total financial damage done in mississippi and the other states, but well stay on top of it for you. The health and welfare of the people of mississippi are of particular interest to this program, one of our first reports focused on the shortage of primary care doctors in mississippi. Reporter with the fewest working Family Doctors per capita in the nation, many in mississippis poor and rural areas have trouble seeing a physician. Its a its a hard place to live. Reporter in 2001 just one primary care doctor was registered in sharky county. In humphries county where more than 9,000 people live, there were two. In the delta you are looking at areas without a lot of transportation. Theres not public transportation, so people have trouble getting to providers, and you dont have a large number of providers, in particular specialists. Reporter so were driving through the mississippi delta right now, and if you look around you can get a sense of how rural this place is. Access to care and primary physicians, these are some of the big considerations that people out here are confronted with. Another problem is that residents have very few options when it comes to buying health insurance. Blue cross blue shield has a merely mon ol listic hold on the market. I asked about the effect of so few doctors and only one major health ininsurer. You have got a lot of people that are unhappy with some of the deductibles, and they just have to take it, you know . They have got no choice. I have had the privilege of living in other states where you have more than one ininsurer, and you dont have the kind of troubles with the pricing. One thing that happened a little while back, just because Blue Cross Blue Shield has a near monopoly in mississippi they got into a scuffle with some of the mayor hospitals in the state. Basically blue cross said they werent going to pay what Health Management was charging for some of the services, and so Health Management sued blue cross then in turn it was the old onetwo, blue cross started charging or rather took Health Management associates out of their network so consumers had to pay out of network rates. And this whole concept of out of network and in network seems to be coming into

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