On June 15, 2012, MISH’s Global Economic Trend Analysis shares some charts from reader Tim Wallace that help explain that 23 Percent of Small Business Owners (Approximately 6.21 million) Report “No Pay for a Year”; New Zealand, Singapore, US, Best Places to Start and Run a Business:
“The first chart below shows actual employment of covered workers compared to the civilian population and labor force. Covered employees are those eligible for unemployment benefits (working or not). Some are currently collecting those benefits.
“In the following charts, “covered employment” or “net employment” refers to those with benefits and currently working.
“Self-employed workers and contractors are not eligible for unemployment benefits even though they have to contribute to state unemployment insurance schemes. It believe it is government-sponsored fraud to have to pay unemployment insurance when there is no chance of ever collecting it.
“The next chart shows state level employment data. Net covered employees (those currently with a job covered with unemployment benefits) was calculated by subtracting continuing unemployment claims from the pool of all covered workers.
“The next chart compares BLS employment numbers to net covered employees (those actually working).
“Since 2010, the economy has added 3.23 million jobs according to the BLS. Of those 3.23 million jobs, 3.33 million (slightly greater than 100%) have been self-employment, contractor, family-business jobs, or other jobs with insufficient wages and therefore ineligible to collect unemployment insurance.
“Since 2009 the numbers look much worse. In that timeframe the economy added 2.36 million jobs according to the BLS. Of those 2.36 million jobs, 5.91 million (250%) were self-employment or jobs otherwise not covered by unemployment insurance benefits.”
We must begin to think long term and realize that private sector job creation in numbers that match the pool of people willing and able to work is constantly being eroded by physical productive capital’s (the physical products of non-human technological innovation and invention) ever increasing role. The degree of “real” job creation will constantly decrease as well as the level of earnings from employment to labor workers. While small business will continue to be an engine of entrepreneurial endeavor and new startups, the jobs resulting will reflect lower wage income for the majority of Americans.
The solution is to embrace policies and programs that result in broadening private, individual ownership in the future productive capital growth of the American economy, so that over time ALL Americans will benefit with income streams generated by their investments in our business corporations and companies and the income-producing productive capital assets held therein.
http://globaleconomicanalysis.blogspot.com/2012/06/100-of-jobs-added-since-2010-have-been.html
