MUST READ! “Dear Person Seeking a Job: Why I Can’t Hire You” | Charles Hugh Smith via ZeroHedge

Potential employers have to respond to the incentives and disincentives that exist in today’s world, and those do not favor conventional permanent employees.  I know you’re hard-working, motivated, tech-savvy and willing to learn. The reason I can’t hire you has nothing to do with your work ethic or skills; it’s the high-cost Status Quo, and the many perverse consequences of maintaining a failing Status Quo.

The sad truth is that it’s costly and risky to hire anyone to do anything, and “bankable projects” that might generate profit/require more labor are few and far between. The overhead costs for employees have skyrocketed. So even though the wages employees see on their paychecks have stagnated, the total compensation costs the employer pays have risen substantially.

Thirty years ago the overhead costs were considerably less, adjusted for inflation, and there weren’t billboards advertising a free trip to Cabo if you sued your employer. (I just saw an advert placed by a legal firm while riding a BART train that solicited employees to sue their employers, with the incentive being “freemoney” for a vacation to Cabo.) Continue reading

Explaining Yesterday’s Seasonally Adjusted Nonfarm Payroll “Beat” | ZeroHedge

… the end result is that in January, those “not in the labor force” did in fact rise by 1.2 million whether compared to December or to 2011 – please, go ahead and check as many times as needed, and the labor force participation rate dropped to a new 30 year low of 63.7%, a number which incidentally only has to drop by 5% more percent for the BLS to report zero, or even a negative, unemployment rate.

via ZeroHedge.