The latest BLS employment report showed a gain of 244,000 jobs for April, which was trumpeted by the Obama administration and the media as a continuation of a rapidly improving jobs market. While job growth is important, it's also important to realize the jobs hole that needs to be filled. Over the past four months more than 800,000 jobs have been created, but in January 2009 alone, more than 800,000 jobs were lost. Since February 2010, 1.8 million jobs have been created, but 8.8 million jobs were lost prior to that period. That's a job shortage of 7 million and that doesn't include the 125,000 jobs each month that needed to be created to simply absorb new entrants into the workforce.
Additionally, the unemployment rate increased to 9%, since more people began looking for work. Returning job seekers is often considered an improved sign of job availability, but if they aren't hired, they will go back into hiding and the unemployment rate will decline. Because of returning job seekers, the number of officially unemployed increased 205,000 to 13.75 million, which is still historically high when compared to other jobs challenged times.
One of the few honest assessments of the current jobs market was offered by Heidi Shierholz of the Economic Policy Institute:
At this point, coming out of a recession this deep, we should be getting unambiguously huge growth, of 300,000 to 400,000 [new jobs] a month," said Heidi Shierholz, a labor economist at the Economic Policy Institute. "And it's just nowhere near that." She concluded: "We're still in a rocky place."
The job market is admittedly improving for some, but it's not improving quickly enough for millions of jobless, especially the long-term unemployed. In April, the ranks of the unemployed who have been out of work for 99 weeks or more increased by 21,000 to a record 1,920,000. That equates to 14.5% of all unemployed.
Other long-term unemployed fared a little better in April compared to March. Those out of work for 26 weeks or more decreased from 5.839 million from 6.122 million in March. But their percentage of the overall unemployment rate remained elevated at a near record level of 43.2%. The percentage of those out of work for more and 52 weeks increased from 31.5% to 32.8% of all unemployed.
The Congress, the Obama administration and most media outlets are silent about long-term unemployment. How do they reconcile the fact that 244,000 jobs were created, but 21,000 additional workers have been unemployed for more than 99 weeks? How do they put on a happy face when a near record 5.893 million or 43.2% of all unemployed workers have been jobless for more than 26 weeks? How do they rationalize their cheerful statements of job improvements with the facts that job creation is very weak considering the trillions of dollars pumped into the economy to support Wall Street and fund tax breaks? How do they high-five the economic recovery when the labor force participation rate -- the share of people over age 16 who are either working or actively seeking work -- is at a low rate of 64.2%, a rate not seen since 1985? They can't. They generally ignore the issue; long-term unemployment is the elephant in the economic recovery room.
What is being done legislatively to address this elephant in the room? To date, nothing. The GOP controlled House has been busy attempting to cut the deficit, repealing healthcare funding, and restarting offshore oil drilling. The Republicans, with the help of some Democrats, are working to weaken Wall Street regulation legislation, end net neutrality, and are arguing the Defense of Marriage Act. They are pandering to their base, acquiescing to their corporate overlords and obliging their big-wallet campaign contributors.
Congressional leaders are more concerned with ideology than reality. They have not presented a jobs bill or employment training legislation, conducted investigations on how to solve long-term unemployment, or offered tax incentives for companies to hire the long-term unemployed. They have ignored legislation, such as Rep. Barbara Lee's H.R. 589, that would help millions of long-term unemployed, the 99ers, who have exhausted all unemployment benefits. While most of the blame can be placed at the door of the GOP controlled House, the Democratic controlled Senate and Obama have been suspiciously silent about the long-term unemployment problem.
Long-term unemployment is not only a national tragedy, but it is a personal tragedy as well. Rochelle Sevier was laid off in October 2008 while working as a recruitment coordinator for a biotech firm. Since that time, "I started my job search immediately. In addition to my job search, I attended various workshops at my local career center. As part of my search I attended job fairs, partnered with temp agencies, posted my resume online, and also submitted my resume to various positions." During the past couple of years Rochelle took part-time temporary positions that included folding sweaters and stuffing envelopes. Her unemployment benefits ended in September 2010 and she didn't find another job until January 2011 when an administrative position became available. Unfortunately that job ended six weeks later, "I finished out my 6th week and now I am back to square one. This rejection affected my emotional and mental state. I started to feel hopeless and depressed because I now feel like I will never work again."
The long-term unemployed are also part of the growing ranks of food stamp recipients, personal bankruptcies, foreclosures and healthcare uninsured. Ellen Turner, who was laid off from her job in December 2008 has struggled with healthcare costs since her COBRA plan ended in June 2010.
"Now I have nothing. Hoping I can stay fairly healthy till I reach 65, and I can get Medicare. I have one knee without cartilage that has to be replaced... at a cost of 10k. Can't do it. I have severe osteoporosis; I need fusions of reclast every year. This year, the pharmaceutical co. provided the reclast, I only have to pay for the doctor visit and lab fees: $136 bucks total. I am fortunate that I can pay this, while others at my age cannot. I turned 63 on May 10th."Ellen is now one of the more than 50 million Americans who do not have healthcare.
Susan R. sent the following cry for help:
"Any idea on what is happening with HR 589? My unemployment ends end of the month and I cannot get a job. I have tried everywhere. I used to be a legal secretary but now they want college which I do not have, Now you have to apply for stores, etc. online and I never hear back. I think my only hope is to kill myself. There is no hope. Also they keep saying things are getting better but I don't see where and neither does anyone I talk to. Everyone says things are bad!!"
H.R. 589 is legislation designed to help the long-term unemployed by extending Tier 1 unemployment benefits 14 weeks. Those 14 weeks could be a financial lifesaver for millions of unemployed. Although the legislation has been discussed for months, moving it forward in a Republican controlled House will be challenging. How challenging? House Republicans are hoping to introduce legislation that could cut extended unemployment benefits in favor of lower business taxes and allow states to spend that money on other programs: The Ways and Means Committee passed a bill by 20-14 today that lets states shift some of the $31 billion they are set to get for extended unemployment aid to prevent the tax increases, pay back federal loans or fund job-training programs.
While those are all commendable options, they are long-term rewards that won't help those that need immediate financial assistance. Oil companies have reported record profits, but the GOP favors giving them billions in taxpayer subsidies while at the same time forcing the long-term unemployed to suffer without any financial assistance.
The latest H.R.589 update comes from Crew of 42's Lauren Victoria Burke; the news is both positive and disappointing:
The good news for 99ers: The president mentioned he wants to possibly attach the 99ers money to some other big piece of legislation somehow... which piece, how and when is unclear...
The bad news for 99ers: The president does not seem deeply motivated to to actively support unemployment benefits in general terms.
Congress needs to address the elephants in the room, since millions of Americans are being sidelined by a relatively weak job market. That needs to change quickly and dramatically or more hard-working individuals such as Rochelle, Ellen and Susan will continue to bare the financial hardship and personal pain of long-term unemployment. Open your eyes now, Congress. The elephants in the economic recovery room won't simply go away if your eyes remain closed.
Follow Michael Thornton on Twitter: www.twitter.com/layofflist
Maybe if people knew where to go to see and sign these petitions we could jolt the thinking of our govenment.
becountedmarch@groups.facebook.com
Denver Unemployment Examiner
Since millions of US manufacturers have outsourced both their manufacturing of products and service support employees, and foreign countries and interest own trillions of USA Treasuries, the solution is simple and in accordance to the basic principle throriy of free trade.
Milton Friedman sold the US Congress on the benefits of free trade being that US dollars would return to the US when the holders purchase US products. Instead, the foreign holders have bought Treasury Bonds instead of US products and services, resutlting in huge unbalanced trade deficiets unfavorable to the US, thus creating huge unemployment in the US.
Just ask the foregn holders to start buying US products instead of US IOUs that have to be repaid by future US generations.
If anyone believes this will happen voluntary, they also believe in the tooth fairy.
The only solution to high unemployment is the following solutions.
Do not alllow forrign investors to buy US Treasuries. Make them buy US products and services only with their accumulated dollars.
Tariff all countries that contribute to unbalaced trade to the US.
Don't spend more on government services than tax revenues allow. That will end the need to sell Bonds in the first place.
Stick with this one. All of your other solutions either make the problem worse and/ or cause additional problems.
The core problem of unemployment is unbalanced trade. You tell me how to get the foreign interests to buy US products with the dollars instead of buying Treasury Bonds. Your free trade theories are not working.Whether the root cause of unbalanced trade is products, services, or oil.
Pleas keep in mind that US workers can not survive on $2.00 a day wages and the US needs more people to make livable wages in orde to qualifiy to pay Federal taxes. Do you also know that 1 in every 6 US resident is now receiving food stamps?
Excellent article. It looks as if people can no longer depend on free handouts from the government they are now starting to turn back to fending for themselves. This is truly good news.
If only we would drop the minimum wage now to spur new hiring even further.
Kai
None of these people want "free handouts from the government". Only someone who is fortunate enough not to have been hit by unemployment in this recession would believe that the unemployed want "free handouts". What planet do you live on anyway?
These people have been "fending for themselves" since they were unemployed, and it isn't pretty. Do we really want a country in which people in their 50's and 60's who have worked for decades now find themselves without health care, dependent on emergency rooms, clinics, and county hospitals... and dependent on food stamps, dependent on housing vouchers and heat vouchers? Is this your idea of "fending for themselves"... sick, perhaps homeless, more and more dependent on government services? Waiting until they are either disabled enough that they can collect disability... or old enough to collect social security? While they collect a few bottles or cans to sell for a few bucks? Is this really the kind of country in which you want to live?
While the upper 1-2% get richer and richer?
Everyone working has the answer! “You have to take a lesser paying job”. There are no jobs period! Allow me to repeat for that for the reading impaired “THERE ARE NO JOBS”. Even the government realizes there are at least 5 people for every job opeaning (this is understated there are actually more, ask anyone looking for a job). This includes fulltime, part-time even the McJobs. Ignorant (ignorant does not mean stupid it means uninformed) people are quick to point out, get a McDonalds job. 99ers around the country have been living over a year without any income, unemployment or otherwise! Don’t you understand that! At this point even a McJob is better than no income at all, if McJobs were available. Also remember school is about to recess for the summer. Think about all those kids competing for jobs with adults that have families to support. So please limit the GET a McJOB comments. Thanks!
Must be the GOP/TP syndrome!
**For over a year, millions of Americans called 99ers have gone without any income or jobs, because none are available. We are not being covered by the news stations. We need your support! We need Jobs or help not welfare. For more information please Google “99ers” “Tier V”.**
**“Wikipedia says” “99ers is a colloquial term for unemployed people in the United States, mostly citizens, who have exhausted all of their unemployment benefits, including all unemployment extensions”. We need your help and support because The President, The Senate, Congress and the News Media have ignored suffering Americans with families and no means of support. We are becoming, homeless, destitute, suicidal and plain desperate. We need the help and support of every American to support our cause until jobs become available.**
Apparently there is $31 billion sitting in a bank account which is unemployment money we have paid in. Republicans wants to take that money and turn it over to the states to use to give more tax cuts to the corporations that downsized our jobs. This is a diversion and misappropriation of public funds.
A combination of "individualist" thinking, cheap energy, capitalism, conquest, and the whole timeline of the human condition perhaps are the reason for such a worse case scenario outcome.
http://www.chron.com/disp/story.mpl/facebook/7566086.html
Elderly inmates put a burden on Texas | Facebook | Chron.com - Houston Chronicle
"A growing population of elderly inmates is driving up prison medical care costs to the point that some Texas lawmakers would like to see more of those who are feeble and chronically ill released early.
In the last decade, the number of inmates 55 and older has spiked as much as 8 percent each year, growing to about 12,500, while the general inmate population has remained fairly flat.
In prisons across the country, inmates grow old serving longer sentences and enter prison at an older age. Between 1999 and 2008, the number of inmates 55 and older in state and federal prisons increased by 76 percent to 76,400 inmates, according to the Federal Bureau of Justice Statistics. The general population grew by 18 percent.
With rising medical care costs and dwindling state budgets, policy-makers and prison officials have struggled to keep pace. Elderly inmates in Texas make up 8 percent of the state's prison population, yet they account for more than 30 percent of prison hospitalization costs.
In fiscal 2010, the state spent more than $545 million on inmate health care. It paid $4,853 per elderly offender for care compared with $795 for inmates under 55, according to the Correctional Managed Health Care Committee..."
Our hard line on crime is coming home to roost.
Afraid opening eyes won't open closed minds. It's ideology that's creating the appearance of blindness.
I live in Texas, was married with no children, and got divorced. I lost my home to foreclosure because I couldn't afford my $700/month house payment with my "good paying" job of $14/hr by myself. The only reason I made that much was because I have a college degree. I also had free health insurance through my employer. When I got laid off, remarried, and moved into my husband's home, I tried to get on his insurance, but that cost us $500/month more and his insurance was free for just him, so I went without. The lousy economy is a major cause of Americans' financial woes. It's time for both parties to help create jobs for Americans.
I'm very tired of the people who call the unemployed "lazy", who tell people that there is no reason that someone does not have a job after two years of unemployment, who tell people to just pull themselves up by their bootstraps, who suggest retraining or starting your business. People who have been unemployed a half year, a year, or longer have heard all of these things.
Retraining is a risk if you are older. Starting a business is a risk, especially if you need to invest any large amount of capital in the business.
I have learned in this life that you have to care about yourself or no one else will. I work part-time but I do have full benefits with good wages which is a blessing. My goal is to use my creative talents to supplement my income with an entrepreneur project starting with some of my income from my job.
After this experience, I feel very uncomfortable depending on someone elses job for my sole financial security. It is hard and life is a struggle especially when you are poor without any financial cushion from your ancestors to give you a head start. But I believe it can be done if we work hard and always keep your own best interest at heart.
There's either going to be a gen-oc ide orchestrated by the corporations...or there will be a re vo lut ion organized by the poor. But, there is no mistake that the Corporations and the Wealthy are waging a war against most of us. Oppression, for sure.
There is a solution to the jobs problem and it could quickly put hundreds of thousands of people back to work. It is not pro left or right. It is not from any corporation, it's outside the government control, it's totally voluntary, and helps all with little sacrifice from anyone.
National Hiring Day #3 is suggested for May 19, 2011. This is a day that corporations are encouraged to hire new employees. Corporations are called on to put patriotism first and help their country in hard times. Those corporations that cannot hire, are asked to stop firing for that month. The day was suggested by the 18 year Dallas art and media zine, Musea.
http://www.politicususa.com/en/ron-paul-levees