USA is more youthful than other developed countries, key to sustained growth

The USA has a higher birthrate and more immigration than other developed countries.  Economies grow due to the combination of 1) People – a growing work force and a growing consumer population, 2) Productivity – profits and rising income per capita = purchasing power and low inflation, and 3) Capital – access to growth capital and a global reserve currency to drive trade.  The advantage of persistent growth in the 15 to 64 age cohort in the U.S. cannot be overstated.  The chart below was published in a provocative article by Joel Kotlin in Newgeography.com entitled “America’s Demographic Opportunity” which is linked as follows: newgeography .  A youthful population can drive more facile technology adoption and hence productivity gains that can help mitigate the aging of Baby Boomers.  Jeb Terry, Sr. Nov. 6, 2011

Aberdeen Investment Management – a guide service for micro-cap technology investment

Stronger labor growth than the headlines suggest . . .

The reported October growth in employment seemed lackluster.  Only 80k new jobs were reported by the BLS Establishment Survey.  The survey included private sector and public sector jobs.  There is a different story emerging from the BLS Household survey and the private sector.  The Household Survey, from which the unemployment rate is calculated, has gained 1 million jobs in the last 90 days!  That’s the most since Dec. 2006. It is very encouraging to see that size of gain at a time when consumer and business sentiment is as abysmal as now.  Businesses are hiring because they have to, not because they want to.  The private sector jobs, as measured by the BLS Establishment Survey, have grown by 367k in the last 90 days whereas the public sector has lost 25k jobs over the same period.  The chart that follows below is derived from data that comes courtesy of Monster.com – the online employment site (here).  It illustrates an 11% gain in job postings since October last year and a level that is the highest since the October of 2008.  Importantly for our portfolio, the Monster data indicates there is 27% growth in the jobs for the “information” sector.  Jeb Terry, Sr. Nov. 6, 2011

Aberdeen Investment Management – a guide service for micro-cap technology investment