NEW YORK (TheStreet) -- February's nonfarm payrolls report was better than economists had expected, although the unemployment rate rose to 6.7% from 6.6% in January.
TheStreet's Joe Deaux spoke to Ronald Richman, partner at Schulte, Roth and Zabel, who said the public needs to acknowledge the technology factor. Technology continues to improve, along with efficiency, soemployers don't need to hire as many people as before.
He added that employers are able to get more done with fewer employees, a trend that is unlikely to change.
Solidifying this fact, Deaux pointed out that many corporations are posting record profits despite struggling to grow revenue -- a sign of cost cutting and higher efficiency.As to the labor market, Richman said that in order for the public to actually benefit from this technological move, they need to be educated where higher skilled position are in demand. However, the fix won't be completed overnight. It could take as long as a full generation to get the proper number of people with the proper education, he concluded.
-- Written by Bret Kenwell in Petoskey, Mich.
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