Ozy and JPMorgan Chase & Company/Laura Elizabeth: There's More to Labor Day Than an Extra Vacation Day

   
There's More to Labor Day Than an Extra Vacation Day
SourceShutterstock
Created With:
jpmc-created
Acumen
Why you should care

Because it’s workers that fuel the American economy.

By Laura Elizabeth

The Daily DoseAUG 31 2017

OZY and JPMorgan Chase & Co. have partnered to bring you an inside look at how entrepreneurs are coming up with innovative methods to help the communities around them. Enjoy the rest of our special series here.

Labor Day marks more than the unofficial end of summer in the United States. The first Monday of September is also meant to honor the contribution that workers make to the well-being of the country — right now, the size of that contribution is unprecedented.

“We tend to look at the labor market as a barometer for the health of our economy,” explains Jim Glassman, head economist for Commercial Banking at JPMorgan Chase. “It’s looking amazingly good,” he says, noting:
The country’s unemployment rate is at a 16-year low of 4.3 percent.

Job creation and employment figures over the summer have far exceeded Wall Street forecasts. Lay-offs are at the lowest point since the early 1970s and the lowest ever relative to the size of the labor force, which is almost double today what it was back then, according to the U.S. Department of Labor. Several years ago, in the spring of 2014, employment returned to pre-recession levels. Today, employment is at a new record high and stands six percent above the peak level reached a decade ago. And it’s not just the fact that people are going to work that helps strengthen the country, says Glassman.

“Most economies live around what consumers do,” he notes. “Consumer spending in the U.S. is 70 percent of the economy. So the economic health of the worker is important.” Put simply: the nation’s prosperity is powered by how successful its people are.

What better time, then, to celebrate the true meaning of Labor Day? The holiday first emerged in the U.S. in the 1880s as a tribute to the labor movement, which fought for better working conditions and fair wages. In essence, the movement made it easier for American workers to find good jobs and cultivate their own upward social mobility.

    Companies thrive on what their talent contribute to the business, so it’s in everyone’s interest for workers to be happy.

    Jim Glassman, head economist, JPMorgan Chase & Co.

But those rights were hard-won: Unions faced violent opposition from anti-labor employers. In fact, Labor Day began more as a protest march, one Tuesday back in 1882. Workers paraded through New York City carrying signs with slogans such as, “Labor creates all wealth.” A national holiday to recognize that fact was finally made official 12 years later. Remembering those foundations is crucial to maintaining a booming economy and country today, Glassman says. “Companies thrive on what their talent contribute to the business, so it’s in everyone’s interest for workers to be happy.”

One reason behind the job market recovery this year is what Glassman calls “the digital economy.”

“It’s an upshot of the digital frontier opening up all kinds of possibilities; technology is fueling innovation and giving people more options.” He cites the sharing economy and start-up culture as opening up a “whole new frontier” for working-age Americans, who no longer need to “sit around and wait for a defined job.” And he thinks this will continue to fuel the labor market in the future: “The businesses we’re going to be living with ten years from now are going to look a lot different to the ones we’re living with today.”

Still, nothing is perfect. While official metrics show near full employment in the U.S., skeptics point to slow wage growth and the number of people in part-time work, although down significantly from recession levels, as cause for concern. And while technology has in some cases created new jobs — in fact, the U.S. economy has created enough jobs to employ anyone who wants to work through two-and-a-half centuries of significant technological change — there are fears it will displace workers as well, particularly with the advent of factory robots and self-driving cars. Even the optimistic Glassman is keen to point out that, when it comes to a truly roaring economy, “What matters most is not how fast you’re growing, but how well your economy is doing per person — how much income is each person earning?”

So, if you remember one thing on Labor Day, perhaps make it this: Every single worker counts. “When we’re all working, we’re all contributing to something — we all depend on each other,” Glassman points out. If the labor movement gave everyone a shot at the American Dream, then Labor Day celebrates how workers keep that dream alive: for themselves, for each other, and for the country itself.

Created With:
jpmc-created

    POV
    I Had My Dream Job, Then Lost It. But My Comeback Was Even Greater
    Acumen
    Hurricane Harvey: You Can Do Something to Help
    POV
    Finding That First Job
    POV
    The Environment and the Economy: You Don't Have to Choose
    Acumen
    What Does It Take For a Large Corporation to Go Green?

OZYAcumen

Numbers and factoids --- fodder for your next cocktail party.

    Hurricane Harvey: You Can Do Something to Help
    Acumen
    Hurricane Harvey: You Can Do Something to Help

    Many residents of Texas and Louisiana are stranded due to the record-breaking storm. Show them that they’re not alone.
    Ad Nauseam: Why TV Ads Are Wasted on Women
    Acumen
    Ad Nauseam: Why TV Ads Are Wasted on Women

    Don’t hold your breath for ad-free TV, but the marketplace for effective marketing is definitely shifting.
    OZY Poll: Free College for Everyone?
    Acumen
    OZY Poll: Free College for Everyone?

    Government-funded free college is most popular with young people and Democrats, but higher taxes not so much.
    OZY Poll: Are We Ready for Robot Teachers?
    Acumen
    OZY Poll: Are We Ready for Robot Teachers?

    According to a poll by OZY and SurveyMonkey, Americans want to see more tech in the classroom. But robo-teachers? No way.
    OZY Poll: Full Results
    Acumen
    OZY Poll: Full Results

    OZY teamed up with SurveyMonkey to ask America about education and the future of work.

More from Acumen
Most Popular on OZY

    The Environment and the Economy: You Don't Have to Choose
    POV
    The Environment and the Economy: You Don't Have to Choose

    Green power has a lot of advantages. It also makes financial sense.
    What Does It Take For a Large Corporation to Go Green?
    Acumen
    What Does It Take For a Large Corporation to Go Green?

    How do you run an eco-friendly global conglomerate? Answer: You partner.
    The Obscure Senate Rule That Will Dictate Tax and Health Care Policy
    Politics & Power
    The Obscure Senate Rule That Will Dictate Tax and Health Care Policy

    The Byrd Rule determines what can — and can’t — get through the Senate with a bare majority.
    The Sharp CNN Commentator Telling Trumpers 'Boy, Bye'
    Politics & Power
    The Sharp CNN Commentator Telling Trumpers 'Boy, Bye'

    Rye’s commentary, from TV to podcasts, lights up the internet with a forceful liberal voice made for the Trump era.

get caught up
with the presidential daily brief 
New Technology Gives Bangkok’s Street Dogs a Purpose
Stray Power
New Technology Gives Bangkok’s Street Dogs a Purpose
Steely Dan Cofounder Walter Becker Dies at 67
Home at Last
Steely Dan Cofounder Walter Becker Dies at 67
vault ahead
with the daily dose 
Can Fintech Advance Civil Rights?
Fast Forward
Can Fintech Advance Civil Rights?
The Female Scientist Saving the Sharks of the Middle East
Rising Stars
The Female Scientist Saving the Sharks of the Middle East
Stay interesting.

25M People and growing
   Facebook
   Twitter
   Instagram
   Vimeo
   Youtube

    The Week On OZYAbout OZYMeet The TeamJobs @ OZYAdvertise On OZY

© OZY 2017 Terms & Conditions

    Facebook
    Twitter
    179Shares
    Copied
    Copy link
    Email