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Entries in Costs (14)

Wednesday
Aug312011

Day Care Now Costs More than College, Study Finds

Jupiterimages/Thinkstock(ARLINGTON, Va.) -- Parents of newborn children are likely dreading the prospect of sending their kids to college, figuring the cost in 2029 will be astronomical.

But they better start saving their pennies now, because day care costs are exceeding the tuition of some four-year colleges.

According to a study by the National Association of Child Care Resource & Referral Agencies, one year of infant day care exceeds the cost of public colleges in 36 states and the District of Columbia, where it's a whopping $18,200.

Putting kids in Mississippi day care centers is a relative bargain at around $4,650 annually.

Parents better start shopping around for bargains where they can find them because the cost of day care goes up every year, not down.  It increased 1.9 percent on average nationally over the past year because of the rising price of food and labor.

Copyright 2011 ABC News Radio

Monday
Jun272011

Report: Two Might Not Always Live More Cheaply than One

Brand X Pictures/Thinkstock(NEW YORK) -- It's a growing trend. The number of couples co-habitating has risen 13 percent in the past year, to include 7.5 million couples. But a new study suggests, combining households doesn't always save people money.  
 
A review of census data by the Pew Research Center finds household income for co-habitants without college degrees is about the same as those who live alone.  

Living together does pay off for college-educated co-habitants, whose household incomes are about $15,000 higher than those who don't live with partners, and $5,000 more than married couples.  

Scientists say the less-educated tend to marry younger, possibly divorce sooner and are more likely to be left with children, while degree holders are often two-income earners.

Copyright 2011 ABC News Radio

Monday
Feb282011

Just How Big Is the Threat of Inflation?

Photo Courtesy - Getty Images(NEW YORK) -- The price of gasoline is up sharply in recent days.  Food inflation is also rising, but a new report released Monday finds that most other prices remain under control.

Richard Wobbekind of the National Association for Business Economics says the problem seems more scary than it really is.

"I call this the great disconnect," he says.  "When I go to the grocery store, I have a heart attack.  And when I go to the gas pump, I'm looking at gas prices that have risen dramatically in the past year.  Looking at those two think I'm saying, 'Boy everything costs a lot more.'"

But Wobbekind adds that when we look at the overall picture, we see that things like housing are included in that larger view.

"Of course, housing costs have been going down."

Many consumer electronics products are also cheaper, experts say.

Copyright 2011 ABC News Radio

Tuesday
Jan252011

Jobs: What Does It Cost to Add a Worker?

Photo Courtesy - Getty Images(NEW YORK) -- There is a cacophony of voices shouting about jobs -- politicians, traders, economists, business leaders all yammering on about needing more and what it'll take to get unemployment down. With all the rhetoric, not many Americans know what it takes to fund a new job. What does it really cost to add a worker to a company's payroll? Well, here it is:

$40,630.20 (BASIC WAGE; the average weekly earnings for a private sector worker according to the Bureau of Labor Statistics is $781.35 x 52 weeks)

+ $17,064.68 (BENEFIT and TAX COST; the BLS says that for every $1 in wages, employer costs for taxes and benefits are $0.42 )

= $57,967.88 (TOTAL ANNUAL DIRECT COSTS to employers for the average worker)

And this number doesn't include the cost of rent, telephone/Internet, computer, training, etc. for the average worker -- it's just the direct costs of employing someone. Experts say these other costs can add thousand of dollars more per year, depending on the industry and job requirements.

So what does all of this mean? That it's expensive to "add a job."

But what does it cost to add enough new jobs to cut the unemployment rate to six percent, where we were in the middle of 2008?

Today we have 14.5 million unemployed folks in the U.S. To get to six-percent unemployment, we'd have to find work for 5.3 million of those unemployed people.

5,300,000 (NEW JOBS needed to bring unemployment to 6 percent)

x $57,967.88 (TOTAL ANNUAL DIRECT COSTS per new worker)

= $307.2 billion (ANNUAL COST OF NEW WORKER PAYROLL)


To absorb just the average direct costs of these new workers, we would have to add 2.1 percent to the U.S. gross domestic product. And that's not including the profits the private sector would require to justify adding the workers to their payrolls -- we're not running a charity here, after all.

Talk about jobs is cheap. Adding a job is not.

Copyright 2011 ABC News Radio

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