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Monday, March 7, 2011

Before celebrating the U.S. 8.9 percent jobless rate, low wage work, high underemployment remains

joblessImage by khalilshah via Flickr
Despite the 'rosy' jobs report from BLS,
low wage employment opportunities that
are coming out of the Great Recession of
'07-'08 will not be enough to pull
many Americans out of an economic crisis



The nation’s official unemployment rate has fallen to 8.9 percent as employers added 192,000 jobs in February 2011, according to the Bureau of Labor Statistics (BLS). That was the only so-called "good news" because, while the jobless rate is slowly decreasing, economists say it will still take years for the jobless rate to return to pre-recession rates. 

According to former U.S. Secretary of Labor Robert Reich, the economy would need to add 300,000 jobs every month until 2014 in order for the jobless rate to drop back down to 6 percent. 

A new study by the National Employment Law Project (NELP) shows that most of these newly created jobs pay significantly lower wages than the jobs eliminated after the Wall Street financial crash.


Specifically the report cites that during the Great Recession, US lost more than 8.84 million private sector jobs. To date, current policies by the Obama Administration has only managed to reduce that deficit by 1.26 million employment opportunities, which can be attributed to President Obama ignoring any additional assistance for long-term jobless 99ers.  

Up to 13.9 million workers are still unemployed. Another estimated 14 million are unemployed as a March 3rd Gallup poll cited the rate of workers wanting full-time work but employed part-time at 19.9 percent in February 2011. For today's unemployed workers, nearly half of them have been jobless for more than six months. 

In the private sector, there is a deep imbalance between where the recession’s job losses occurred, and where the growth of the past 12 months was concentrated, NELP report noted

-Lower-wage industries constituted 23 percent of job loss, but fully 49 percent of recent growth

-Mid-wage industries constituted 36 percent of job loss, and 37 percent of recent growth

-Higher-wage industries constituted 40 percent of job loss, but only 14 percent of recent growth

With the "job creation" if one were to call it that, NELP states that our current recovery looks worse than the “jobless” recovery of the 2001 recession, on several fronts:

-After a year of positive job growth, the private sector after the 2001 recession had recovered almost half (47 percent) of the jobs it had lost.  By contrast, to date the private sector has recovered only 14 percent of the jobs it lost during 2008 and 2009.

-The early job growth following the 2001 recession was more balanced than the early job growth following the 2008 recession, with significantly more growth in higher-wage industries.

-Some of these trends are specific to the causes of the Great Recession (the collapse of the housing bubble and the financial crash).  Others reflect long-standing shifts in the economy (such as the overall decline of manufacturing), as well as standard cyclical behavior (such as the surge in temporary jobs early in recoveries).  

When America's hear the 'rosy' pictures of the unemployment rate falling from the Bureau of Labor Statistics, usually missing is the details of where those 'jobs' are being created within. 

America cannot truly recover until we start creating jobs with the proper wages to take care of their financial needs and influx increases, like in the case of current gas prices; which impact food, clothing and transportation costs.


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1 comment :

Check 4 Jobs @ USMOA.ORG said...

Illegal immigrants are desperate and use less as good neighbors in the U.S. They break laws entering our country then are to scared to report criminal activity of which is a deep concern to U.S communities and citizens. Most illegal immigrants are lazy drunks, illegal drug users, not smart and business owners are to blame too for hiring / harboring them which makes them worse than the illegal immigrant. Also we should push congress to have all business owners / hiring managers in the U.S jailed & fined if they knowingly hire an illegal alien. Our U.S government corporations and business owners have figured out how to enslave, rob us, and kill us without even using a gun. These Guys R Evil Geniuses! Watch Out U.S Citizens & The International Poor! Every time a U.S business hires and illegal alien before a legal citizen is an assault or act of indirect violence to cause death to legal U.S citizens by financial impairing us. Please help us stop this pelage that is destroying our young growing nation and support the American Dream at http://usmoa.org/

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