Fox Business
Expand
Browse All Video
Watch Live

You're watching...

What is Stalling Job Growth?

Details

  • Description

    JamesDruryPartners CEO James Drury on the state of the job market.

  • Duration 3:40
  • Date

Clips

Also in this playlist...

After the Bell

Auto-advance: ON

Auto-advance
View All

Transcript

This transcript is automatically generated

-- report was not pretty now we have the CEO and executive recruiting firm with some ideas on what's really wrong with the employment picture.

Jim Drury is CEO James -- partners and he joins us now good to see him thanks for coming in equation and -- I'll tell you what bothered me the most was a labor force participation -- people just leaving we now have the lowest labor force participation rate.

Since 1981.

-- 63 point 5%.

Labour participation is -- is that one of the things that bothered you the most.

Well absolutely.

I think that there are a lot of people had seriously want to work but there are only so many times you can go up to bat and get rejected.

Because there a lot of people looking for jobs were not many jobs to be given.

Well there's also -- for the past 45 years now corporate the corporate strategy has been.

To cut costs.

Get rid of debt and cut the workforce I mean the main way that they have cut costs is by cutting the workforce.

Any sign in the board room that that is going to change.

Well I think that there are a lot of cost challenges in corporate America -- know that commodity costs -- very high.

Gasoline -- a very high a lot of companies depend on that so.

The things they can control they're gonna probably continue to manage closely and order sure your bottom line and increase shareholder value.

And another thing we saw today's figures manufacturing -- manufactures more probably than any other sector learning -- looking for ways to cut costs in labor.

They're they're doing more automated services is -- to try to cut back on their label for some manufacturing is really where the labor market is shrinking most well we've always.

Been a manufacturing economy for years we've gradually progressed serves a service economy but I don't think anybody ever predicted.

That in in the growth and jobs -- 85% of them would come from the service economy and 15% from the manufacturing economy.

And in the manufacturing economy is dead in the water and.

So since the service economy depends so much more on labor force is -- any way to expand that to the point where could offset the losses in manufacturing.

Absolutely but you you don't don't hear the political parties talking about investing in the service industry.

I think the service industry have and it does not all of -- GM -- dollar -- -- saving GM one big company and but it thousands of manufacturing companies hurting but the service industry and small businesses in America.

92% of the growth came from businesses and less than 500 employees and that's.

Please let me just put a fine point on that because that comes -- -- your state 92% of growth last year came from companies with 500 employees or less so we really do have -- now -- -- -- smaller companies were never before for job growth small service companies everywhere we gotta be putting our investment.

Dollars now you say we ought to be putting our investment dollars what do you mean by.

I mean when we start talking about regulations in the tax financing or whatever that we really recognize that all these other things -- maybe more visible.

Saving GM as they say but I think you've got to put it where the growth is in services where the big jobs -- Are coming for now a lot of these small companies are subchapter S is and others that take their income is individual income -- their profits.

If taxes go up on those people make -- -- 200000 dollars.

They're going to be affected directly by the companies acted like that we are growing -- subchapter S absolutely we're during significantly right now we're expanding.

We're growing about 100% a year so would you be hiring fewer people if your tax rate went up.

No I don't.

Think so because I'm interest and if -- it got to the point where I couldn't didn't have a money hire them because of the tax load.

Yes -- right now I'm investing in the growth of our company for the future but.

And not everybody is as fortunate as I am to have the kind of business and building -- jury great to see you Jim thanks very much for coming your -- -- David.

Load More