MALVEAUX: Fed to Play Lesser Role
Julianne Malveaux | 1/8/2014, 3 p.m.
What about unemployment? If those holding dollars invest them, unemployment will drop slowly. We still have excess unemployment – the unemployment rate was about 5 percent at the beginning of the recession. We lost nearly a million jobs a month at the beginning of the recession, and in the past several months, we have gained about 300,000 jobs a month. It may take until 2015 to return to the level of employment from 2008 or early 2009.
In addition, in some occupations, the level of technological change has been rapid, and machines are doing the work that people once did. Furthermore because of the recession, some employers have found that they can make do with fewer employees. For example, we have seen drops in clerical employment as managers use computers more. In some offices as few as one or two employees do the work that half a dozen did just three years ago.
While investors are applauding the Fed move, workers should be wary of the “tapering” that will pull $10 billion a month from the economy. African American workers, especially, will be hit harder than others by these changes. Improved economy? For whom?
Julianne Malveaux is a Washington, D.C.-based economist and writer. She is President Emerita of Bennett College for Women in Greensboro, N.C.