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247,000 Jobs Lost in July; Without Recovery Package, Would Be Far Worse |
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U.S. jobs lost in July totaled 247,000, according to U.S. Bureau of Labor Statistics data out today, with the unofficial unemployment rate now at 9.4 percent compared with 9.5 percent in June, the first improvement in the pace of job loss since June 2008.
The July jobless rate, while much better than economists predicted, still means 14.5 million U.S. workers are without jobs. And if the underemployed or those who want a job but have given up looking are counted, the broader U.S. unemployment rate stands at 16.3 percent, more than 25 million Americans who need jobs or full-time work but cannot find it. Jobs were lost in all sectors, except for education, health care, leisure and government, which all experienced small gains.
More frightening, the July job figures would have been far worse without the economic recovery package, which has helped to slow the pace of job loss to less than half of what it was just six months ago. From May to July, job losses averaged 331,000 per month, compared with losses averaging 645,000 per month from November to April.
Economic Policy Institute (EPI) economists say the economic recovery program already has saved or created some 750,000 jobs. Plus, says John Irons, EPI director of research and policy, the gross domestic product (GDP) report last week showing GDP shrunk far less in the second quarter of this year (-1 percent) than the first quarter (-6.4 percent).
But the depth and duration of the nation’s economic crisis that resulted from eight years of the Bush administration and economic imbalances that took years to form will not be solved quickly—or with one shot in the arm of economic stimulus.
EPI economist Heidi Shierholz and other economists predict the jobless rate will reach 10 percent by the end of this year or in early 2010. Those with jobs are putting in far fewer hours than a year ago, so as the economy improves, the first move employers will make will be to increase hours, not hire new workers. Says Shierholz:
The fact that we’ve seen this dramatic new decline in jobs means employment will be long in coming because employers have a lot of hours to fill.
Worse, there are now 5 million long-term unemployed workers, the worst such figure in any recent recession. There are 5.7 workers looking for every one job available. EPI Director of Research and Policy John Irons predicts that the effects of the economic stimulus package will begin to wane in mid-2010, when the U.S. jobless rate will still be bad. EPI economists say today’s jobless data point to two urgent actions Congress must take: Extend unemployment insurance and pass a second round of economic stimulus.
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OMG! We have spent so much money and are running such huge deficits now. I don’t think this is the time to spend another mammoth chunk of money, and saddle ourselves with an even bigger debt. Things look like they may be coming around, so let’s let them, and not call on our (very expensive) federal government to bail us out constantly from every single thing.
During the early years of the Great Depression, there was a heavy government spending that reduced unemployment and lifted stock prices and hopes. It was looking like a recovery. Conservatives said to cut back on spending, and spending slowed. Months later, the economy declined again. Later spending wasn’t enough to smooth out the fall, because the deeper you’re in a depression, the harder it is to spend your way out of it.
In contrast, in Japan, in the 90s, they did heavy spending all along, and ended up with a long recession. That’s not good either, but it’s better than a depression.
I am curious as to how much worse it would have been? I keep hearing it but I can’t know it, nobody can. I would also like to know the sectors in which 720,000 jobs not 750,000 have been created?
If the AFL-CIO would act like a trade union and not a PR firm for the Democrats maybe workers would start fighting for jobs instead of waiting for crumbs from the capitalist table but then that would be to much like work for the crowd that occupies the “leadership” of the AFL-CIO.
Any HONEST Union members would NEVER accept ANY contract from ANY employer without READING it FIRST!!! Yes or No makes no difference… what is in this health bill? Who WROTE it? WE all need to know BEFORE it passes!!
Any HONEST Union member or Union Executive Board would NEVER sign ANY contract with ANY employer without READING it FIRST and knowing what it SAYS… Yes or NO is not the issue here.. What is in this bill, how will it affect US and who wrote it? Do you sign any contract in life WITHOUT KNOWING the Terms and conditions of it? READ THE BILL everyone BEFORE AGREEING to it!!!
Is this next stimulus bailout, while may not take effect until a year or so, going to incluse billions to help the bankrupt schools?
Will the next bailout supply food stamps to everyone without enough money for food?
How about funds for section 8 housing support to everyone who can’t pay the rent? How about laws to prohibit utility shutoffs for impoverished people?
Will unemployment insurance be extened until there are jobs available for all who need work at “living wages”?
There is forever “no money” to help fund the critical needs of the people. But billions and trillions for Wall Steet gangters, corrupt bankers, the military to wage unending wars for profit.
Bailouts only try to fix this capitalist economy. There is no fix or bailout out that can restore capitalism as far as meeting the survival needs of millions of working people.
The answer is to end capitalism and transition to a socialist economy that creates work and jobs to fill the needs of working people and society.
The the wars in the Middle East that have bankrupted the country so that the oil companies become filtny rich along with the merchants of death who have slaughtered a million people in Iraq to profit from the oil. Crimes against humanity are intrinsic with capitalism.
Nationalize the entire energy industry (oil, gas, nuclear, etc.) to transition the economy to a sustainable energy economy.
Nationalize the Fed and the banks. Set up State banks to handle the needs of consumers and local government for low-cost credit. etc.etc.
Read the World Socialist Web Site http://www.wsws.org
It’s a lie that there are less people unemployed! They just aren’t enrolled in Unemployment any more. Unemployment isn’t approving as many and employers are contesting the claims.
My claim was approved and then after 7 months unemployment allowed the company to contest the original claim. Isn’t ther3e a statute of limitatioons for a former company to contest? I was already automatically approved for the extension! The same Unemployment agent that approved it in the first place in January calls me and asks me what happened again and I told him that I had told him this in January and he acted like I had never told him before and was seeing my case for the first time. Sounds like he was told to side with the former employer. I had to appeal and get no money till the appeal is complete. I still have to claim my weeks. It is next to impossible to find a job as employers seem to have fixed it in a way to only take the lowest wage acceptors.
You are partly correct in that the unemployment rate doesn’t count “discouraged” workers that have given up looking for a job, but that is not tied to whether you are still receiving unemployment insurance. The unemployment rate is compiled from two surveys - one by the Census Bureau and one by the Dept of Labor.
Socialist does not mean communist. The UK has social medicine. It is not Communist. Too many are falsely scared by the word SOCIAL. When you sit in a waiting room and talk with those waiting aren’t you being SOCIAL?
If you want to isolate yourself because you have it better, can I put a star on your coat so I know who you are? I think I remember some race did that because they did not care to be SOCIAL with a specific culture/race.