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U.S. Unemployment Rate Now 9.4 Percent |
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In May across the nation, 345,000 jobs were lost, worsening the U.S. unemployment rate to 9.4 percent, according to data released today by the Department of Labor.
There are now 14.5 million jobless U.S. workers, a number that doesn’t reflect the severity of the problem. If those who are underemployed or who want a job but have given up looking are counted, the broader U.S. unemployment rate stands at 16.4 percent—more than
25 million Americans who need jobs or full-time work but cannot find it.
The number of long-term unemployed (those jobless for 27 weeks or more) increased by 268,000 over the month to 3.9 million and has tripled since the start of the recession in December 2007.
According to the Labor Department’s Bureau of Labor Statistics (BLS), the job loss was spread throughout most industries, moderating in construction and retail:
Manufacturing employment fell by 156,000 in May….Employment in construction decreased by 59,000 in May, compared with an average monthly job loss of 117,000 in the industry for the previous six months….Job losses in profesional and business services moderated in may, with the industry shedding 51,000 jobs….Retail trade employment was down by 18,000 in May; job cutbacks in retail have moderated markedly in the past two months.
Health care employment increased by 24,000, and employment in government changed little in May.
AFL-CIO President John Sweeney described today’s jobs data this way:
The moderation of job loss is welcome news and an affirmation of the early steps taken by the Obama administration, but until the recession ends and we see sustained economic growth, jobs will continue to disappear and the ranks of the unemployed will growth.
Minutes after the BLS released the May unemployment data, the corporate media already was predicting the end of the recession because the nation lost “only” 345,000 jobs in May.
Not so fast.
Even if monthly job losses continue to diminish and the recession ends this year, the nation likely will confront a massive employment deficit of 10 million jobs and a long period of slow wage growth, according to the Economic Policy Institute (EPI).
From the Daily Labor Report (subscription required):
“I think we will have high unemployment for a long time” after the recovery begins, EPI President Larry Mishel said in a telephone news conference. Mishel predicted that the unemployment rate will reach 10 percent by the end of the year, sooner than many economists expect.
In the early 1990s, it took 15 months from the official end of the recession before the unemployment rate stopped rising—and 19 months after the end of the recession in the early 1980s. But it’s not sufficient for the unemployment rate to fall to turn around the economy. The number of new jobs created must keep up with population growth—that means 127,000 news jobs must be created a month, according to EPI.
In a June 3 conference call, Mishel noted another worrying trend: wage decline. Although wages held steady last year, beginning in late 2008 or early 2009, wage growth skidded to a near halt, and now is barely growing. While job numbers get the attention, Mishel says wage growth is a critical indicator of the health of our economy.
Why do we care about wage growth? For most families, wages are what they live on. It means the recession is now adversely affecting those lucky enough to keep a job. Wage growth is being knocked down so much we will see inflation outpacing wage growth.
Underemployment, long-term unemployment and wage growth are three key factors to keep in mind when the Wall Street crowd crows that losing 340,000 in one month is good news.
9 Comments
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How long does the government think they can continue to keep releasing phony figures and outright lies and believe that we are too stupid to know the difference? Jobs numbers, housing numbers, and the worst of them all: how in the world did the banking industry go from an industry that desperately needed billions of dollars to keep from going under in one quarter suddenly have “record-breaking” profits at the end of the next quarter? The market and the economy are all based on these fake numbers and sucker rallies to get more money out of working America. Don’t fall for their stupid game!
The unemployment situation in this country is disturbing high 9.4 percent which indicates to me that this recession is getting worse for the average american. I am very concerned that the unemployment situation will not improve for several years. I think that congress needs to do a lot more for average americans, I thi nk that wall street is crazy if they think the economy is stabilizing because general motors and chrysler had to go into bankruptcy. the automobile industry used to be one of the higher paying blue collar jobs for average americans. I am very concerned about the current economic situation for average americans.
As a life long union member,its sad to see the AFL/CIO sell out the american workers to pander to special interest groups for amnesty,I hope that there will be a change in the leadership in the AFL/CIO because they have sold us out and our country,get on the phones and email congress and tell them NO to amnesty.Its a sad day for american workers.
I think it is particularly disturbing how much underemployment there is–lack of full-time work–burger-flipping/dillybar dipping jobs, etc. I think there should be some incentive for employers to have full-time people (40 or more hours) and major discentives for having part-time people (fines, penalties, etc). one cannot pay bills, buy groceries, pay rent, etc on 10-20 hours a week and no insurance benefits! Where are all those jobs Obama promised? How about raising the minimum wage he promised–how about a living minimum wage! the american worker should not be reduced to some third-world status and needs to rise again because american workers are the BEST!
Recently on a talk show, I heard that even with 14 million people unemployed, we have 3 million jobs in this country that cannot be filled because people do not have the necessary job skills! One of the job fields that needs people, but can’t get them, is lab technicians. With all this stimulous money, why can’t they help people who are smart and want to work with the necessary training to put them there? Is it cheaper and better to keep people on long-term unemployment or train them for these unfilled positions and a rosier future ? Duh……
Why is the the AFL-CIO even complaining about high unemployment, since by supporting illegal immigration they have helped to create this unemployment level?
Wake up Union members, this is why these foreigners are called illegal aliens, because they are stealing American jobs!!! If you want a job, demand the AFL-CIO supports e-verify instead of amnesty for illegal aliens!!!
Better yet, elect leaders who supports jobs for Americans instead of for foreigners!
WHY CONGRESS STIFFS ORGANIZED LABOR
We let them!
Although the origin of labor’s demise can be traced back to its turn to the right; to its penchant to red-bait while embracing cold warrior advocates, the destruction of PATCO and its air traffic controllers by Ronald Reagan in 1981 serves as a more topical example.
When Reagan took on the air traffic controllers, several activist, militant, true labor leaders called for a united labor response including nationwide work stoppages if necessary.
Lane Kirkland, who was then heading the AFL-CIO, denounced Reagan but also sent letters to AFL-CIO affiliates urging them not to take strike action in solidarity with PATCO workers. The presidents of several large unions sent out similar messages of discouragement.
Unfortunately, ranks and file across our land fell into line behind the pie card do-nothings, and Congress has had us on the run ever since. In 1960, thirty-seven percent of the workers in America were union members. But with labor’s turn-to-the-right –strategy-of- retreat we witnessed a decline in union density. When we retreated in 1981 we were down to 22%.
When, in 1993, Clinton shoved NAFTA down our throats only 16% of U.S. workers were organized. Labor’s response? Retreat!
By the time Bush stripped certain federal employees of their collective bargaining rights we had fallen to 12%. Labor’s answer to Bush was another retreat.
Unions that are run from the top-down, many of which are headed by people who never worked in industries under union contract, suffer and by extension, all of labor suffers.. Their Ivy League schooling provided no courses in working class ideology, or in experiencing what it feels like to actually labor and get their hands dirty. They have never walked in the moccasins of real workers. They don’t get it!
Congress will continue to have us on the run if we allow pie cards to lead us! Congress will continue to stiff organized labor if we let them!
Until those of us who work and sweat return to our roots of militant activism in the struggle for social and economic justice, Congress will continuing stiffing us. We have an obligation! We must not allow true working class consciousness and militancy to die on our watch!
Wake up ranks and file! It is up to us!
Washington meant well, but we all know how crooked corporate America is. A large portion of the stimulus money will probably never go where it’s supposed to.
Maybe Washington should cut out the middle man and revert to 1930 style work programs like WPA and NRA and direct hire.
Virtually every cent would go into a paycheck rather than a bankers pocket. The programs would only last until the economy improves. The money would be spent here rather than invested overseas by corporations.
Yeah let’s give Amensty to all the illegals here now cause they deserve it. They’re just hard working people like us.While we’re at it lets do away with all imigration laws and open up the country to anyone from anywhere that wants to come.Heck we’re a big country there’s room for everyone,no jobs just room.