Real Growth Shown in Labor Participation: Trujillo

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Jan. 9 (Bloomberg) -- Sol Trujillo, Chairman at Garcia Trujillo Holdings, discusses labor force participation as the telling sign of growth in the U.S. economy. He speaks on Bloomberg Television's “In The Loop.” (Source: Bloomberg)

Quarter look better?

When no one is inside jcpenney or shopping at sears, you have got to know that.

It is topline.

It is not earnings that can be manipulated to request the economy is getting better and it should show up in revenue.

Or your operating profit.

Class we have got to head out to the newsroom because we are getting the jobless lames report.

Mark crumpton.

Thank you.

Initial jobless claim -- claims number is out.

330,000. initial jobless claims at 330,000. the revised figure of 345 is the number we are getting here in the newsroom as michael mckee has been telling us over the past couple of days.

The jobs numbers will be important.

They may be driving the discussion in washington, especially going forward because of the debate we are now having in the nation's capital about the unemployment insurance.

All of this is tying together nicely were not so nicely for members of the united states congress.

The initial jobless claims number, 330,000. back over to you, adam johnson.

Thank you.

We have not moved a whole lot on those numbers.

We were up and are still up and you could say the dow futures came down.

We are up a quarter of a percent.

You are seeing movement in the 10 year, the move was about three percent and now to 97 and maybe 298. giving up a little bit of ground on the yield.

It is still part of the year where we do not pay a lot of attention to jobless claims.

It is still volatile.

It is the fat people because of the holidays do not get to file for unemployment claims.

Some states are slower in reporting unemployment claims to the labor department.

It is hard to do exactly what is going on.

The trend is ok.

The thing we want to watch today as he economist is retail sales.

Chain stores are reporting today.

They trickle out over the course of the day.

What we seem to be seeing is flat or down.

We were expecting that.

It is what people were expecting.

The problem is chain stores do not represent the whole retailing world.

It may be people bought at smaller stores they do not report an online at amazon or something like that.

Or they bought experiences.

They went on vacations and things like that.

It will be a while before we really know how the holidays is and when.

Two comment and a question.

When we talk about jobless reports and unemployment, it seems to me the most relevant metric people should be talking about is labor force participation rate and reporting back and talking about it.

That is really what tells us who is and who is not working and how active people are.

When we talk about growing the economy, study show in the u.s. right now, we need to be growing jobs hollowly at 350,000 or so.

In order to go at precrisis levels.

We talk about economic growth and it seems to me that conversation should be the one we center on, as opposed to one where it tends to get nasty.

You talked about earnings.

It is like unemployment rate based upon the numerator and the denominator tends to get affected by those anticipating.

Labor participation has dropped.

We are not counting as many people.

There is a great debate about why that is.

Labor force participation should be coming down for demographic reasons.

Is it all demographic reasons or are there other reasons people are dropping out?

They are discouraged and cannot find work?

That is what the fed is trying to juggle.

Janet yellen is the cover woman, chuck -- cover chair, cover person.

She gives an exclusive interview and asks about the effect of qe and she says this is not just for rich people.

The policy is aimed at holding down long-term interest rates to support recovery by encouraging spending.

Her theme is that we need to get more people back to work to help the economy.

250,000 jobs?

Per month.

How does it happen?

Again, i want to go back to something mike just said.

If you look at demographics, we have a fundamental shift going on.

The hispanic population of the country is going and will probably account for 67% of all growth population.

Over the next 10 years.

In the u.s.. when you think about labor force participation rates, they are the highest employed group of people we have in the country.

It is not about so much demographics.

It is about your question, how we create an environment where we incentivize people to employ people, as opposed to disincentive eyes people to employ people.

Obamacare, does it actually create a problem for hiring?

I think data has shown when i as a small and medium-sized business have to pay more taxes, what it does is it disincentive eyes is made to hire more people.

We have to think structurally, i think, about how we incentivize the small places, in addition to large companies about, how do incentivize employing people as opposed to disincentive eyes and peered you create more burdens for me, i do less because i have to earn returns on investment i am making.

I have to give shareholders return.

You're running a business and not a charity.

Right.

There are structural reforms that need to be thought about.

Tax reform and all that sort of thing, and that will be part of the story about how we go creating more jobs.

Sorry to be so long, but the second part is really about a restructuring of our economy.

When we look at retail sales, we are looking at a traditional set of retailers.

We are not including e taylor's. our retail sales growing or not.

How do you know?

Can you tell by the number?

The answer is you cannot.

They are not factoring in amazon.

A huge amount of shopping.

The online business is up 25 and 30% versus the store business, single digits.

Thank you.

Great conversation.

It is not over.

When we come back, the cable industry, everyone knows how much it is changing.

We will find out how it benefits content creators.

Content is king.

Is the king getting crowned?

? the way we consume television.

Aereo gets financing to time warner subscribers.

That is a lot of news.

I am focused on what this means for content.

No one is saying, must-see tv on a thursday night.

They care about content they like and are willing to find it.

Jon erlichman is living it up in vegas and had a chance to catch up with the ceo and founder of relativity and a tough guy to get an interview with.

What we're seeing today, probably the single greatest demand for content, a really good time to be in the content creation world between amazon and netflix and google, you now have at&t and verizon, there is, from everywhere you look, whether it be traditional suppliers and over the top suppliers and digital suppliers, there is a content frenzy.

Running us now, he covers media for bloomberg news and our guest coast -- guest host.

Content is king.

Tell me exactly what that means and who specifically is cashing in because of it.

If you are a traditional player like cbs or time warner, they are actually making extra money by selling to netflix and amazon and hulu.

Money they do not have before.

They are just reselling old content ear that is been happening for a few years.

Hundreds of millions of dollars easily on an annual basis.

They see the benefit and value for these over-the-top services.

Delivered over the internet.

Cable companies were afraid at first and then the programmer sided with the cable guys and then realized there is all this money here.

That is what ryan is talking about.

More players paying for content, whether it is new or old.

Lie have the cable providers not figured out they can do a deal with cbs and fox and say, i will offer this thing and i want to watch tv on my iphone and if time warner cable becomes the gatekeeper, the content providers will get paid.

That is the right question.

Why didn't they figure this out earlier?

Just so people understand, who are they act out qwest cable, satellite, verizon, they are now offering tv services.

Why is netflix a third-party company e why did the pay tv guys not figure out a way to start streaming that content.

A good question.

Why didn't you figure it out.

One of the fundamental issues that happens is you have a legacy business model.

That is, how you're making money at that time.

The question is, when is the timing for you, making your current product obsolete.

Right.

And moving onto other platforms.

It is a timing issue.

You will always have an innovator that will come in and do it first.

Innovation is not allowed on the set.

Sorry.

I did not say disruptive.

The other dimension in addition to what was said is that global content is being consumed.

I was in china a month ago and turned on the tv in the morning when i wake up.

Are you watching bloomberg?

-in addition to bloomberg, i may see "ugly betty" or "modern family." the content we talked about in a u.s. central way, usually valuable globally.

We are seeing content from china and korea and other places coming in to the u.s. because of demographics of consumers so we now need new distribution models to reach consumers so i give what i want and do not what i do not want.

It could be as soon as next week.

Sort of at the sidelines for now.

Charter has financing.

He has not put a dollar into the mix.

Thank you for joining us.

We will be right back.

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We are joined now by jason, -- duces?

Class we learned that yesterday.

He's our in-house reporter.

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This car is $50,000. trickle-down technology.

This text has been automatically generated. It may not be 100% accurate.

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