For many unemployed workers, jobs aren't coming back
Sun, 09/05/2010 - 03:00 EDT - LA Times
The U.S. unemployment rate will remain elevated for years, experts say, a grim prospect for Americans who have exhausted their benefits.The U.S. economy will eventually rebound from the Great Recession. Millions of American workers will not.
Here it is, folks: The final jobs report before the 2012 Presidential Election. The Labor Department announced this morning that the U.S. economy added 171,000 jobs in October, and that the unemployment rate ticked up one-tenth of one percent to 7.9%, besting the consensus prediction of 125,000 new jobs. And with the announcement, the government’s monthly Employment Situation Report can now revert back to its usual status of being just another data point among many which help paint a picture of the state of the economy.
What the sell-side expects: JP Morgan 75K Goldman Sachs 100K UBS 100K Bank of America 110K HSBC 120K Barclays 125K Citigroup 130K Deutsche Bank 130K What the market expects vis RanSquawk: Today sees the release of the US nonfarm payrolls and unemployment rate reading for the month of October, during much of which, hundreds of thousands of federal workers were furloughed due to the recent sixteen day government shutdown.
This was a bad month for jobs in the USA. Not only did the U.S. Bureau of Labor Statistics report that the number of jobs remained at the same level as last month (125,000 additional jobs are needed for population growth, on average and we have huge losses from the credit crisis recession that have to be gained back) the last 2 months were revised down. The change in total nonfarm payroll employment for June was revised from
a gain of 46,000 to a gain of 20,000, and the July was revised down from gaining 117,000 job to gaining
There's some evidence that gainfully employed congressfolk are recoiling from extending unemployment benefits because they've trouble believing that anyone wouldn't be able to find a job after more than a year. To some degree, this reflects a view of the recession that's national rather than regional. In fact, some states, like North Dakota, have very low unemployment, while some areas, like Detroit, have incredibly high unemployment.
"It's going to put my family and me out on the streets," is a perspective shared by many of the 1.3 million Americans about to lose their emergency unemployment claims. The program, started during the recession, was intended to help jobless people after they exhausted state benefits, typically lasting six months. House Republicans resisted continuing the benefits without budget cuts elsewhere to cover the cost.
FRIDAY'S jobs report touched off a round of hand-wringing over the possibility of permanent damage to America's labour force as a result of years of labour-market weakness. Labour-force participation fell in April; there has been virtually no recovery in the employment-population ratio over the past three years, despite steady (though disappointingly slow) employment growth.
Come January 1st, 1.3 million Americans will lose their unemployment benefits unless Congress passes a law extending them. Throughout 2014, an additional 850,000 people will lose their benefits as well.
toured Palermo’s Pizza with Mayor Barrett and met with local business leaders
as part of White House Business Council outreach effortActing
U.S. Commerce Secretary Rebecca Blank traveled to Milwaukee today to deliver
the keynote address at the 113th League of Wisconsin Municipalities
Annual Conference to discuss the American Jobs Act–how it will spur economic
growth, accelerate job creation and benefit Wisconsin. The League is a nonprofit and nonpartisan association of cities and
villages that serves as an information clearinghouse, advocacy organization and
legal resource for Wisconsin municipalities; it is comprised of 190 cities
and 392 villages.
At the Conference, Blank discussed details of
President Obama’s American Jobs Act. Blank highlighted the different ways
the plan would make an immediate impact on job creation: cutting taxes for
small businesses, putting more money in the pockets of consumers through an
expanded payroll tax cut, and preventing the layoffs of teachers, firefighters
and policemen, while putting construction workers to work through much-needed
renovations to school, roads, rail and airports renovations. Blank
underlined the need for Congress to act quickly on the bipartisan measures in
the Jobs Act.
experts say the American Jobs Act would put nearly two million people to work,
while putting more money in the pockets of workers and repairing infrastructure
vital to enhancing America’s competitiveness,” Blank said. “It’s time for
Democrats and Republicans in Congress to come together and swiftly pass the
measures in the Jobs Act, which will put people back to work right away and put
more money in the pockets of American families.”
in the day, Blank joined Milwaukee Mayor Tom Barrett on a tour at Palermo’s
Pizza, a rapidly growing regional company that added almost 100 jobs last year
and is leading the “Earn to Learn” program with the Mayor’s Office, which gives
high school-aged youth a chance to develop marketable skills through direct
work experience and training seminars.
Erez Davidi submits:
The U.S. consumer is the main driver of the U.S. economy, being responsible for 70 percent of the U.S. GDP. However, don’t expect that the mighty U.S. consumer will be back any time soon—at least not consuming like it used to. There are several reasons for this.