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Peter S. Goodman

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Latest Jobs Report Underscores Unemployment Crisis

Posted: 07/09/2012 1:07 am

As the government on Friday released its latest official snapshot of the American labor market -- finding that the economy in June added a paltry 80,000 net new jobs, while the unemployment rate held steady at 8.2 percent -- most commentators seized on the data as generic fodder for the unceasing campaign story.

How will Republican nominee Mitt Romney exploit these fresh indications of distress for his own political benefit? Can President Barack Obama survive a weak economy to claim reelection? These are predictable questions, the sorts of reactions we can play for ourselves in our heads without bothering to turn on the television. Their ubiquity testifies to the degree to which too many professional observers are inured to the real human experiences behind the data.

The horrendous job market is not a political story. It is a national emergency playing out in slow motion, a catastrophe that has come to dominate life in millions of American homes. The persistent shortage of paychecks has seeped into our aspirations and made them smaller. It has eroded the basic American understanding about the supposed rewards of trying hard, getting educated and looking for work -- a formula too many people have been following only to wind up destitute, discouraged and dispossessed.

Will the president survive the most punishing job market since the Depression? That's backwards. The real question is whether people like Yvonne Smith can survive the job market.

Out of work, out of money and running out of improvised solutions to the problems of not being able to afford rent, Smith and her 14-year-old son have been sleeping on the floor of a storage locker in northern Georgia, where they stashed their belongings after being evicted from their rented townhouse in February.

"Where else were we going to?" she told me by way of explanation when I met her last month at a food bank in Chattanooga. "I try not to think about it, but that's our space, and we sleep there."

Smith, 51, has grown accustomed to working with what's available, following the collapse of more ambitious plans. A decade ago, she moved to Atlanta from New York City, where she had been earning $57,000 a year as a document processor at a law firm, in what amounted to a classic American reach for upward mobility.

"In New York, everything was fine, but I wanted better," she told me. "I was tired of the weather, and I wanted my son to have his own yard."

In Atlanta, she rented a house for what she had been paying to rent a cramped apartment in the Bronx. She got another legal job, and settled into what felt like a better life. Then came the Great Recession.

In 2008, she was laid off along with her entire department, she says. She looked for work, but Atlanta's job market was bleak even by the standards of the downturn already gripping the nation. As the months passed without a paycheck, and as she lowered her sights from legal work to office temp jobs to cashier's positions at grocery stores, she and her son subsisted on food stamps and her $320-a- week unemployment check.

When that check ran out in June 2010, they piled their belongings into their aging Chevy Trailblazer and moved to northern Georgia, where they could rent a modest apartment with the last of their savings, and she could try to find a job. She found a position in a local warehouse, but it was only temporary. She secured another temp job at an Amazon distribution center in Chattanooga, some 20 miles away.

Then, one Saturday morning last November, the repo man came knocking at their door. She was more than $1,800 behind on the payments for her vehicle, and he drove it away, eliminating her means of getting to work.

For a time, a friend who also worked at the Amazon plant gave her a lift. But when the friend lost her job just before Christmas, Smith was out of options, and again jobless.

When her eviction came in February, Smith and her son took refuge in a van that belonged to a Baptist church, and then at a homeless shelter where they spent two months before reaching the limit, prompting them to camp out in their storage locker. They lie down there, alongside their dinette set, their couches, their family photos, their kitchenware, their clothes - all the accouterments of a life that is no longer operative. In the morning, before anyone comes to work there, they sneak out and she rides a bus to the dollar store where she has a part-time job as a cashier for minimum wage -- enough to survive, but not enough to contemplate a home.

Smith's story may be extreme, but it is hardly unique. You can easily meet people confronting such circumstances at food banks, homeless shelters, and in welfare offices. It used to be that those who landed in such straits tended to present a complex assortment of problems, from substance abuse to mental illness. More and more, people have been sliding into such states because of one dominant problem: They can't find work.

Buried in the latest jobs report is a brutal data point that clever analysts have tired of bothering to mention, because it has become a permanent feature of our times: 5.4 million people have been officially out of work for six months or longer.

This number stands in for a group of actual people - the so-called long-term unemployed - whose material circumstances have been remade, along with their fundamental expectations about their lives.

Four years have passed since Monica Ross-Williams, 42, lost her job overseeing a retail store for a major cell phone carrier in Michigan. In that time, she has tried her hand as an entrepreneur, launching an ill-fated janitorial services company. She worked part-time as a merchandising representative for prominent brands, training staff at big box retailers on how to sell the product. College-educated, she used to make $50,000 a year. Now, she is happy to line up part time work that pays $10 an hour. Her credit has been tarnished. Her husband is still working, but lean years have taken a toll, chopping their household income roughly in half.

"It has put a strain on our marriage," she says. "When you have financial issues, every discussion leads to people being depressed. 'How are you going to be able to pay this?' 'How are going to be able to pay that?'"

Ross-Williams has become a frequent blogger whose contributions center on creative solutions to joblessness, such as credit to help those out of work launch their own businesses.

"It's definitely not paying my bills, but it's my passion," she says. "I feel like I have finally found my voice. I want to, if nothing else, be a voice for people in my situation and not let others think that unemployed people just want to sit around collecting unemployment checks."

Yet even as she demonstrates resourcefulness and an irrepressible spirit, her faith in the opportunities that once seemed so abundant has taken a hit.

"I really honestly believed - I'm not going to lie in corp America - that basically if you worked very hard, you were rewarded with good pay," she says. "That has been shaken."

This sort of downward adjustment is now part and parcel of the American story -- a story that will not be altered so long as the economy merely stands in as a prop for two candidates proffering dueling narratives about where we are and how we got here.

It will not be addressed so long as the pundit class is content to tease out the data points of another awful jobs report for insights into electoral fortunes.

The campaign ought to be an opportunity for sustained debate about what we can do to fix the economy, rather than a platform for talk about how the economy can be used to wage the campaign. We need an active, serious focus on large-scale job creation. Everything else is just noise.

 
 
 

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08:11 PM on 07/14/2012
The capitalists who sent jobs to slave labor camps will always blame the democrats for their evil taxing ways and their being corrupted by inefficient unions. The idiot majority is unequipped to form their own research party.
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HUFFPOST SUPER USER
sal ear
Hey, how are you?
02:29 AM on 07/11/2012
RE: "The campaign ought to be an opportunity for sustained debate about what we can do to fix the economy, rather than a platform for talk about how the economy can be used to wage the campaign. We need an active, serious focus on large-scale job creation. Everything else is just noise." Thank you for a 'non-Polly-Anna' article, Mr. Goodman. I realize it's important to foster optimism......however, when I see our Congress and our two Presidential Candidates 'discuss' JOBS for working people - it is enraging. It is (as you said) "just noise". Alot of talk, but No results. I'm sure there are many like me, who believe JOBS will remain bleak - regardless of who is elected Prez. Romney seems like a piece of plastic; Obama says the same inane things over & over (perhaps Obama's tired of his job?). Neither are impressive or compelling (IMHO).

What will the USA do - if increasing numbers of Citizens become & remain Jobless?

Is this an elaborate Corp/Politico ploy to ensure the USA can compete with the Chinese & their 'slave-labor' work force?

INDEED: "We need an active, serious focus on large-scale job creation". WHY hasn't this been THE # 1 Priority for the LAST 4 YEARS???????
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MiddleMolly
Working to better the USA!
12:37 AM on 07/12/2012
"WHY hasn't this been THE # 1 Priority for the LAST 4 YEARS???????"

Have you been hiding under a rock? Do you know how many of the President's initiatives have been dedicated to improving the job situation? And why do you not think that 4,373,000 private sector jobs while fighting a Repub headwind is nothing? And have you written your Congressman and urged him/her to support the President's jobs bill? The one that's just been sitting around for months because the Repubs refuse to deal with it?

STOP BLAMING OBAMA! Good heavens, open your eyes!
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sal ear
Hey, how are you?
11:50 PM on 07/14/2012
Molly - perhaps YOU should open YOUR EYES. My eyes are open; I see clearly what is happening in the Workplace - based on first-hand observation; I am fortunate (so far!) to have remained employed. I notice my Employer firing tenured employees - and replacing them w/Temp workers - at reduced pay & no benefits. I have friends & colleagues who have lost jobs, and have remained unemployed for years, or returned to jobs with dramatically reduced wages & benefits. I am well aware of what CONTINUES to happen to US Workers, because I am a Worker. I know many people just like me, who face grim futures & bad outcomes if conditions don't improve. Your inuendo that I live "under a rock" is foolish.

Have YOU looked around, Molly? are YOU UNAWARE of the errosion that continues in jobs, wages & benefits? Coupled with the meteoric rise in the cost of BASIC SURVIVAL??

Are these 4 mil+ 'Private Sector' jobs inclusive of the work done by various TEMP WORKERS - now replacing (pesky/costly) 'traditional employees' - who are not accustomed to the role of 'day laborer'? Molly - are you a closet Republican?
11:29 AM on 07/10/2012
Let's face it gang. The "new" republican party is very much like a bunch of 3 year olds who, when Mom tells them to clean up their room or they'll be grounded, whines and cries and then decides to burn the housee down because they didn't get their way.....
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TFlint
09:25 AM on 07/10/2012
No employer will hire until Mitt wins. That's Corporate America's plan for ending workers rights.
11:27 AM on 07/10/2012
there is a conspiracy a foot and if Rmoney wins (God help us) it will totally destroy this country.....and just like when Tricky Dick was reelected in 1972, a few years later there wasn't a single republican in the whole country Nixon got elected by magic....talk about delusional.....
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specialkimi
Save America. Vote a republican out of office.
04:31 PM on 07/10/2012
I have been saying that to folks, if a republican gets elected president, the floodgates will open & jobs will be plentiful. But if a democrat gets elected, they will continue to let American workers suffer by not hiring.
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Wayne Caswell
Consumer Advocate & Founder of Modern Health Talk
09:10 AM on 07/10/2012
How quickly we moved for Dream to Dispair. ... American Dream: study hard; go to college; apply yourself; become successfull; save for retirement; enjoy elder years with grand children. ... Americain Dispair: lose job; health emergency; personal bankruptcy; food stamps; homeless; hopeless, for you AND your family.
01:53 AM on 07/10/2012
Do you think it is coincidental that the Department of Homeland Security and the Department of Human Services have the same acronyms DHS? Perhaps our leaders at the time when they were restructuring the government agencies knew that all the changes they had made over the years would result in a country where its people would be in need of human services and the security it would need would be in controlling its own people? Regardless of the reason, we are experiencing economic, financial, and employment problems. Perhaps Obama needs to give employers incentives for hiring the unemployed like Clinton did to encourage employers to hire welfare recipients. The problem isn't totally more jobs, it is getting people trained and qualified for existing jobs. It is like the 80s when manufacturing companies were closing or relocating leaving hundreds of laid-off or fired workers without anything else to fall back on. Times were hard, many lost their homes and lifestyles, but with proper training and education they were able to re-enter the workforce in different fields. The government should create a program that provides funding to unemployed, laid-off, or fired employees so they can get the proper training or education that would allow them to enter new fields that have job openings. It might cost a little upfront, but the long term affect would be very beneficial to the entire country when all unemployed individuals are working and paying taxes.
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TFlint
09:23 AM on 07/10/2012
Yes, it is coincidental.
12:38 AM on 07/11/2012
Perhaps.
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sal ear
Hey, how are you?
02:40 AM on 07/11/2012
funny!
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MiddleMolly
Working to better the USA!
12:56 AM on 07/12/2012
It is the Department of Health and Human Services: HHS, not DHS. The name's aren't the same.

Do you know how many incentives to hire the unemployed have been included in various bills? And there are more incentives to hire the unemployed in the President's jobs bill which the Republicans are ignoring. Do you know how many training programs there are out there in community colleges?

The number of jobs lost in the 80's was nothing like what we experienced in this recession. In the 80's, Reagan, who inherited job growth from Carter, lost 3 million jobs after implementing his 1981 tax cuts. 4.4 million jobs were lost before Obama took one foot into the Oval Office, and another 4.3 were lost after he took office and passed the stimulus, most of those jobs were lost in the first three months of his administration.

As the 1981 recession was a man-made recession caused by the Fed raising interest rates, it was easily reversed, particularly when Reagan's own budget director worked with the Dems in Congress to reverse many of the draconian 1981 tax cuts. The tax increases of 1982 caused the economy to rebound.

But this mess, more like the Great Depression than the 80's, is not easy to reverse.

Also, in the 70's and 80's, many companies ran their own training programs and SPENT MONEY to train people in new technologies for new jobs. They didn't turn to corporate welfare to get the workers they needed.
01:55 AM on 07/13/2012
I experienced the 70s and 80s. I am well aware of the economic and employment conditions during those times. Companies not only trained their employees in the 70's, they also paid to have the employees attend colleges or technical schools to get training for advancement to other positions within the same company. Those were the days when employees obtained careers with companies and stayed with them until they retired. The reason why I know about the plight of the families who lost their jobs during the 80's is because I interviewed a lot of them in order to obtain information on a book I was writing concerning long-term unemployment and its affects on U.S. families.
01:56 AM on 07/13/2012
As far as the Department of Health and Human Services, I wasn't aware of the name change. Where I live, it used to be called DHS. I guess I should have checked the date it changed over to DHHS, my error. It was a good thought anyway. As for all the bills pending or that have passed, I really haven't kept up with all of them, but I can see you have done your homework on them. As for job loss, there maybe more this recession than in the 80s, but those experiencing the losses were hit just as hard. Americans weren't use to it then as they are now which made it feel more penetrating and intense. People who thought they would never have to apply for food stamps and welfare were being forced, for the first time, to apply for assistance.

Tax cuts and interest increases weren't the only causes of the 1981 recession. Life in the U.S. was dramatically different then than what it is today. Other factors included gasoline at 85 cents a gallon in the 80s verses $3.65 a gallon today. An average middle class home was less than $40,000.00 in the 80s while today it is over $100,000.00, give or take some.
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Jim Biggs
Welcome back Mr. Carter
11:59 PM on 07/09/2012
but i thought we had the summer of recovery already ??????
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MiddleMolly
Working to better the USA!
12:58 AM on 07/12/2012
4,373,000 more private sector jobs... We can only guess how many more jobs we'd have now if the Republicans weren't plotting from Day 1 of Obama's term to destroy his presidency by refusing to work with the Dems. Draper's book: "Do Not Ask What Good We Do".
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Jim Biggs
Welcome back Mr. Carter
06:46 PM on 07/12/2012
more jobs as of when ????

our top employment or the bottom ????

there are  STILL  1 million  FEWER  people working now than at the start of his admin.............and thats being generous
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zvibenyosef2030
I am a deeply religious nonbeliever
11:54 PM on 07/09/2012
Congratulations to the author of this article Peter Goodman. I have been waiting a long time to see an article like this. The American people have become hypnotized by our own little political drama. It is an unhealthy obsession which ignores the real people who are being hurt, or the important issues, but instead focuses on who is up and who is down on the political stage. This preoccupation is encouraged by most of the media because it sells.
05:26 AM on 07/10/2012
Mr. Goodman has once again hit the nail on the head. On a recent trip to D.C. and in Congress, it became clear to me that what I was watching was actually a very poor stage drama - involving the "players" pontificating their puffy-little-selves in their congressional theatre - and absolutely oblivious (by choice) of constituents falling off their cliffs. It's all about money, friends, and it's out of control. If we do not collectively and peacefully DO something, I think you all know where we will end up ... gnawing at genetically-engineered corncobs, breathing noxious air, paying a high price for a drink of water. Join Occupy. Today.
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zvibenyosef2030
I am a deeply religious nonbeliever
12:09 PM on 07/10/2012
Yes I have thought for a long time that the emphasis of the story's on main stream news have been on the wrong things. It is as if the only thing that concerns them are the trivial matters of who won the latest debate. They even jump into the fray to comment on the socially divisive issues Republicans employ to waste and fritter away time and money until the election is over, instead of passing real jobs legislation or financial reform. They Republicans of course have calculated that by doing nothing, the economy will remain in the doldrums, and the incumbent will lose by default. A very cynical approach. It s not as if they have any solutions of their own to offer. Their mantra of tax cuts for the rich has lost all legitimacy after it has been proved to be so ineffectual. Their tax plan based on the Paul Ryan budget represents another massive shift of wealth from the working poor to the upper classes. I await November with some optimism, and large amount of trepidation.
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MiddleMolly
Working to better the USA!
12:59 AM on 07/12/2012
How will Occupy get better people in Congress? Occupy has been a big disappointment this year. Fighting with police over the right to erect tents on public parks has nothing to do with what is wrong with this country.
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sal ear
Hey, how are you?
02:49 AM on 07/11/2012
so true - I am just sick of & disgusted with the 'candidates'!

Consider their Campaign Budgets!!!!! 100's of $$$$$$MILLIONS!!!! Why not let the Politicos (at ALL various levels simply draw STRAWS to see who gets the jobs (PREZ & other Gov jobs). Take the $200+ MIL, & DIVIDE the $200+ MIL, distribute the funds equally/evenly to each US Citizen. Then just send the Pols/Government back to their buildings - where they pretend to work.
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zvibenyosef2030
I am a deeply religious nonbeliever
05:21 PM on 07/11/2012
That sounds about right, all except for the part "where they pretend to work". They are actually working very hard destroying what is left of the middle class and stealing their money.
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HUFFPOST SUPER USER
William1950
everything I say could be wrong.
11:23 PM on 07/09/2012
I have tried to tell you this.... Jobs are being taken, not by foreigners nor illegal immigrants, but by automated and smart devices, computers and algorithms.. factories that spit out widgets by the millions with a human workforce of ten or twenty people... watch the shows about the fishing boats, the cake factories... look at the stores going to self checkout lines.. jobs are going away... and they are not going to come back... it doesn't matter who gets elected or what kind of stimulus is tried... it won't bring jobs back....
look up "Basic Income Model" ... or the venus project.... gotta do one or the other.

peace
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sal ear
Hey, how are you?
02:51 AM on 07/11/2012
But.....everything you say could be wrong.
11:21 PM on 07/09/2012
If I didn't know better I would think that the private sector is not doing fine.
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Andy Svoboda
Left, Right, Up, Down, Sheep
11:20 PM on 07/09/2012
Need a job... join the military.
I have a feeling they will one day be the only ones employed with PLENTY of work to go around.
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12:27 AM on 07/10/2012
http://www.stripes.com/news/all-branches-meet-military-recruiting-goals-1.131869
All branches meet military recruiting goals - News - Stripe

"Published: January 14, 2011

Each of the U.S. military’s service branches met its active-duty recruitment and retention goals for the first quarter of fiscal 2011, the Department of Defense said.

“We are very proud that our all-volunteer force can still be successful in a wartime environment,” Douglas Smith, a spokesman for the Army’s
Recruiting Command at Fort Knox, Ky., said Thursday.

Through December the Army surpassed its first quarter goal of 14,100 by 433 recruits, with the Navy, Marine Corps and Air Force all meeting their recruiting goals or exceeding them. The Marine Corps Reserve surpassed its goal by the largest percentage with 116 percent, pulling in 2,637 recruits, 71 more than its goal..."

I spoke with a recruiter last year who said the services are still recruiting, but are very selective.
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01:35 AM on 07/10/2012
All branches are meeting their recruiting quotas, so they are very selective.
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Dave4ObamaSinceDay1
Never sit out any election
11:20 PM on 07/09/2012
"The campaign ought to be....."

I agree...Now what?
11:19 PM on 07/09/2012
Close the outsourcing / offshoring loophole and the roblem fixes itself in a decade!

Alternatively, offer permanent tax releif (i.e., lower taxes) to those corporations that invest 50% of their profits back into creating new jobs in THIS COUNTRY and for those that don't, inflict the pre-Regan era tax rates on corporations (i.e., 70%)!
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panther22
11:09 PM on 07/09/2012
" The campaign ought to be an opportunity for sustained debate about what we can do to fix the economy, rather than a platform for talk about how the economy can be used to wage the campaign. We need an active, serious focus on large-scale job creation. Everything else is just noise."

This quote from the article sums it up good. All we are hearing is noise.
10:36 PM on 07/09/2012
We need to go after the million and billionaires and take all there money away from them and give to the poor so that can create some jobs...damit!