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tv   Inside Story  Al Jazeera  July 6, 2014 3:30pm-4:01pm EDT

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news >> they will continue looking for suvivors... >> the potential for energy production is huge... >> no noise, no clutter, just real reporting. the new al jazeera america mobile app, available for your apple and android mobile device. download it now who is heeding and who is is lagging behind, it is the inside story. hello, i'm ray swarez. june because the fifth straight month with more than 200,000 new jobs
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created. at 6.1%, the unemployment is the lowest it's been since the fall of 2008. those big economy at 35,000 feet statistics hook good, but they can obscure what is going on down behe. there are industries leading and lagging the recovery, there are regions doing better and regions doing worst. saw the country reach the employment levels we last saw before the recession began. finally are we on the verge of growth that gets the one back to even, but starts to build net growth. the headlines are encouraging. employers added 288,000 jobs and while the fifth straight month of employment gains above 200,000 is good news, the overall economic scenario has far to go in this recovery. the unemployment rate
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dropped .2 of a% to 6.1%, a sign some green chutes are appearing in the american economy. again, the majority of new jobs came in the form of low paying work. the measure in hospitality gained 39,000 jobs. >> what about those higher paying jobs those numbers increased too, but lagged behind. >>ing jobs increased 16,000 in june. 6,000 new construction jobs the construction sector is often seen as a bell weather because it has a multiplier effect. it is important to look at wages in june real wages rose just 6 cents an hour, about in line
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with inflation. the average worker now pulls in $24 an hour. he wageworkers don't do nearly that well. called 1776 is. wages as we would like to see. a lot of folks are still digging themselves out of challenges that arose out of the great recession. hiss toricly crisis take a longer time to recover from. >> despite the uneven recovery wall street is optimistic.
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they are working again but it is likely the old job pays less than the old one with, and there are still millions that have been out of work six months for a persistence problem hanging over. that renumber the kind of number that month after month would reduce long term unemployment, pull workers off the sidelines and put money into people's pocketers in a way that spurred other businesses and encouraging more job creation. is is that where we with are? standing at the verge that the kind of change that millions will feel. we h take you close to close. joining us from providence rhode island. >> tara saint clair, economist at indeed.com,
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a job site she is is also an economics professor at george washington university, and from los angeles leslie appleton young, vice president and chief economists of the california association of realtors. it to get a overview from everybody what they see, what was with your overall conclusion. >> overall these are good news. the best part is that most indicators are finally moving all tonight. the household employment, as well as the payroll are both clearly indicating employment growth. >> rhode island has had a pretty tough run of years in recent years. since the recession began. did they bring any to your state? >> in rhode island from may, but this --
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especially as a small state with an open economy, rhode island is heavily reliant on what happens to the national economy. so any news that the growth is picking up, the raise the hopes here, that they will be also a uptick in job growth here. once with again on a real estate market that in many places had spanked them? had really hurt their family's bottom line? the situation is is a little bit unique, we with went with down further and faster. they had a huge rebound in 20, because houses were with so cheap. it was a once with in a generation opportunity. the investors there -- so we actually have a housing market in california right now,
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that is in a pause. we with have seen is sales below where they were a year ago for almost 12 months now. we have an inventory. because the last couple of years has been so robust, money is still cheap, is that helping you? >> money is still cheap, mortgage rates are afactive, but lending standards are very tight. we with are concerned about the first time
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buyer parties base, because of lack of jobs down point and student loan debt. >> you know, ted, bad times do bring a good set of variables if f someone wants to start a business in rhode island. land is probably cheaper than it was ten years ago. is as i just mentioned, money is cheap to borrow. how come those bad times haven't brought some good news so far to the state? we would see more ability for people to do that. they are seeing green chutes there, rhode island is the second densest in the country, so land basically gets cheap here. it is at the economy whether the economy is good or bad. we were with just talking
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about the affordability problems where housing never is that cheap, just lower than it was during the height of the bubble. it just hasn't caused enough growth with with things getting cheap enough that it would spur a real economic improvement. >> in today's new york times right after the numbers came out, one of their writers, wrote the labor market remains much weaker than the last time the unemployment rate stood at six point one with%. is the six is .1 with today? is. >> if we look like we lived in 2008, we would have had a lot higher labor force. so is we with have about seven more people working today. the 6.1% unemployment when we have about 7 million people compete hi out of the labor force isn't the same hay boar market. >> when you see a number like this. 2 1/2 million for the previous year.
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can we see in the coming months whether they are sure whether they could work. with we with will see them come in off the sidelines. >> that's one of the interesting things we have seen is with the labor force. and is we with are not really sure why. but this is the time when we are going to see if it's that they were afraid of the labor market conditions and now might be the time for them to step back and explore. they leave c or arrive, it is often a barometer of what is going on in the wider economy. has it been a case where new opportunity may be
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drawing people in from neighboring regions and states. are those high costs still making people not sure they can make a future for themselves. it is business climate, and i think -- saw that toyota for example was leaving. for texas, and those are kind of some high profile indications that we probably need to be a little bit more business friendly. the job growth hasn't been bad. the silicon value hi regional economy. is not one of the fastest growing regional economies in the country. and they are kind of highway high knowledge intensive jobs.
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but the concern is just it is very uneven newout the state was with noted housing looks -- just isn't as affordable as it was, and i think that's a major concern can. >> we are going to take a short break, and when you come back, we will continue a look at the job market nationwide, what does it tell you about the health, what request a good year mean for the united states and the world. this is inside story. stay with us. >> on tech know, imagine getting the chance to view the world. >> the brain is re-learning how it sees again >> after decades in the dark, >> i couldn't get around on my own >> a miraculous bionic eye... >> i'm seeing flashes >> great >> tech know, every saturday go where science meets humanity. >> this is some of the best driving i've every done, even though i can't see.
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>> tech know. >> we're here in the vortex. only on al jazeera america.
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>> it's a chilling and draconian sentence... it simply cannot stand. >> they are truth seekers... >> all they really wanna do is find out what's happening, so they can tell people... >> governments around the world all united to condemn this... >> as you can see, it's still a very much volatile situation... >> the government is prepared to carry out mass array... >> if you want free press in the new democracy, let the journalists live. we are taking a look at the latest job numbers. one with bright spot in the latest report has been a frightening and gloomy one with for a long time. the number of long term unemployed has dropped behe one with third of the total for the first
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time in five years. lest likely to change regions in search of work. if f somebody ran through unemployment, they simply didn't disappear. and leave new england, when people ran out of their unemployment, what did they do? did they use up all their savings, what have you been hearing? there are people working who maybe aren't being count inned the official numbers so i am not sure how high that is. you have people moving in with relatives. i think that's one with question that surprisingly rhode island policy makers still don't really have often answer
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to, which is what has happened to those folks that were left behind. rhode island was with running at 70,000 unemployed. and then of course, the labor no, sir shoot suspects rank as well. and the question is if job growth was with significantly stronger would they come back into the labor market. we with can't test that until it improved enough. >> it has to really improve, because employers are reluctant to take on people who have been out of work for a long time. right, there's new research that surviving is jests they are not looking for people that have unemployment longer than six is months. of course, as it tightened may may change that approach. who have been in long term unemployed. >> i am not being unsit thinkic.
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when no one with will take a hook at them, a quite fine work history, they run through their assets and then what? some of them actually have become homeless and we interviewed one on this program. simply don't disappear, what happens? >> we are see a lot of people consolidating households relying on someone who is earning an income, and just sharing across whether it be a husband and wife, or live in partners or parents or aunts and uncles. we with still do rely on our family structure a lot. >> leslie in places that were with hot spots. what happens to families? >> you know, we have seen a hot of just high density families. where you have two or three generations moving in together.
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to make it really cutting workingexpenses working in the underground economy, it has been a challenge. where there just aren't a lot of job students. a lot easier in the coastal cities of california. when there is than density and demand, it has been tough. and as great as symptom of f the numbers are, and i think it is very positive the direction we are going, there are subgroups that will take a while to really catch up.
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where they would fix it up and flip nit a short is period of time. over 80% this time around have been rented out. you know why, there's a lot of household whose don't have good credit, don't have down payments, whatever. there's a huge demand for rental housing. represents have gone up, vacancies are down, so we have a very robust rental market, in fact, half of our new construction the last few years has been multifamily. so i think that's one answer to your question, people aren't owning they are in the rental market. >> geography can be your friend and enemy.
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becoming between connecticut and the very hot boston market, has that created opportunities or just made it more expensive to live there than the economy can justify. >> i think it is probably both, ray, and it is a good point. i think it is easy to focus on rhode island's problems because rhode island is a state. but you see the very is same is problems over the boardner the eastern part of connecticut, and in south eastern massachusets, fall river, new bedford. that now really have been struggling for a lot of years. they have many of the same problems but their states are sort of masked by the incredible growth and in connecticut, so ever since the industrialization happen this has not been enough growth to replace the jobs hoss. to having those job centers chose by, marly
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boston, men of people commute for jobs. where someone who has a good jock in providence, rhode island does a good job, can quickly get offer add significant salary bump. so it can can be a double edges sword. >> are people who shed jobs during the worst of the last eight years. take a look at resumes start interviewing people, and what is it that pulls them over the line? >> we with are seeing a broader range of industries and occupations hiring so it does look like we are seeing more and more employers hiring and we are seeing that across the board, which is a good sign for a robust recovery. within with that, what lets an employerner that the economy is strong enough and demands their particular service is is
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good enough for them to hire, is depend on their particular market. it does look like despite the poor numbers it does look like the economy is growing and there's demand out there for some of these products. >> is some of that anticipatory? even though the numbers were with bad, and the weather is is bad, they are counting on the middle quarters of this year being better? >> exactly. if anything, it suggests that people will go out and buy more. >> we will take a short break, we will concentrate on the low end of the market. low income people have really suffered in these last several years and a lot of the new jobs being created are at lower incomes than the jobless earning before. stay with us. around the
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world. this is what we do. al jazeera america.
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eye are watching inside story. we are looking at the new jobs report. which looks good as a headline, but most of the growth is is in the low paying sek is tors like retail and hospitality. great american cap cane falls of leisure, hospitality, agriculture, all low wage work, but it is a pretty expensive place to live, what does that do for an economy like california? >> well, it mutt as lot of stresses and sprains in it. you have some is sectors that are booming. the hi-tech industry is doing well. but it doesn't necessarily filter down. and one of the phenomenon we have going on. the young tech employees don't want with to live in silicon valley, they want to live in san francisco. there is a very limited amount of housing in san francisco so the rental
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rates are going through the roof. and people that were with long time residents and this is the kind of gentrification that happens from time to time, in just about any city, but they are getting pushed out, and really have nowhere to go. so we with think it is a big issue, and we with are seeing it play itself out. because there's just such a premium on housing and land. and the prices are only going up. in the areas where the job creation is. >> do you have to live further and further away. if f you are doing counter work, or helping people fry on shoes how far away do you have to go before you can represent a decent size apartment? is. >> you can can sigh where
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bart -- the metro goes and then out from there where you are going to find somewhat affordable housing but it's very difficult, and of course, that add as lot of transportation coteses on to an income that is not that much to begin with. in order to have a functioning city, you need people providing those services. so it does create a very stressful environment. >> is rhode island similar, has the job creation come at the low end of the range? >> but certainly we have seen a lot of growth. and tour similar a big industry here, and that's really not a new story. it is just exacerbated already. there was a study out that said providence rhode island was the second most at risk part of the country in 1990.
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for losing jobs to china, which of course we have seen hugely a ton of manufacturing jobs. very few of those jobs are still herrera lot of the manufactures we do have don't need that many workers any more. so there's a bifurcation, and then the high cost of housing. what we with think is a middle class living. >> a lot of people have come back at a lower wage. which must make it tough to not hand on that status to your own children. making it tough tore invest in your own family. >> yes, we are also seeing that people are staying with with their parents for longer, or taking on more roommates or that sort of thing in order to afford living closer to their job. but in addition, when we think about what this means long term.
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whether it be potentially help more people to pursue new skills and this may actually improve the quality of our labor force. maybe you consider education more seriously. >> so grit your teeth, and keep investing even if it doesn't look like a payoff short term. thank you all, that brings us to this edition, thank you for being with with us, the program may be over, but the conversation continues we want with to hear what you think about the issues raised on this or any days show. hog on to our facebook page, send us your thoughts our handle is a.j. inside story or you can reach me directly at ray swarez news. we will see you for the next inside story in
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washington, i'm ray swarez.

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