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September Jobless Rate: Even Worse Than It Looks |
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September’s jobs numbers are worse than we thought even a few hours ago. After a couple of months of encouraging news, the latest report took a decided turn for the worse.
The basic data show that the nation lost 263,000 jobs in September, after falling 463,000 in June, 304,000 in July and 201,000 in August. The official unemployment rate now is 9.8 percent, a figure exceeded in awfulness only by the unofficial jobless rate: 17 percent.
In fact, the number of unemployed rose “only” by 214,000 because 571,000 people abandoned the labor market.
The September unemployment rate would be 11.1 percent if the labor force had grown at the same rate as the population over the last year: The labor force contracted by 615,000 even as the population grew by nearly 2 million. That’s really bad news when you look at the next worst recession of this century: In the 1981-1982 recession, when the unemployment rate hit 10.7 percent, the labor force grew faster than the population.
U.S. employment would have to increase by an average of 573,000 jobs every month for two years to return to pre-recession rates, according to Economic Policy Institute (EPI) economist Heidi Shierholz.
AFL-CIO Labor Standards Policy Analyst Christine Silvia-DeGennaro takes a close look at today’s numbers out from the U.S. Bureau of Labor Statistics—and the picture is bleak.
- The number of full-time jobs has shrunk by 8.2 million or 6.9 percent in the past 12 months—the sharpest decline on record.
- Hours worked dropped 0.5 percent in September after a couple of months of stability.
- Hourly wages rose only a penny and weekly earnings fell $1.54 (a quarter of a percent). The combination of job loss and pay per job decline does not bode well for consumption growth.
Earlier this week, reports showed state revenues plunged 17 percent in the year ended in the second quarter of 2009. As a result, despite help from the Recovery Act, state and local government jobs have dropped by 160,000 or 0.8 percent over the past four months. The state budget report followed a series of other new findings that show previously encouraging improvements for the past few months have soured, including auto sales, home sales and surveys of manufacturers’ activity.
As AFL-CIO President Richard Trumka says:
The economic crisis is a jobs crisis and there can be no strong and sustainable recovery until employment begins to grow. The Obama administration’s aggressive actions have clearly brought us “back from the brink” of what might have been a second Great Depression, but we will need sustained and expanded fiscal support if we are to see a robust recovery.
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Organized labor destroyed what many died to create when they let the banks divest in American manufacturing. Now all labor can do is wait for its economic death. They working man today lacks the smarts and courage to take back what their fathers died to create. They only behave as though they have courage when pointing guns at innocent people around the world doing the dirty work for those who destroyed their unions. We are a nation of fools who only know who will play in the big game on Saturday. Good job working class America. You sold the farm.
Hi Eben
” They working man today lacks the smarts and courage to take back what their fathers died to create.”
Alas, this I do not agree with. I am impressed with many of the younger working folks and some are doing a fine job, well in the tradition’s of labor. I am also impressed with the job some of the retirees are doing.
Yes, the working man has had many setbacks the last couple decades. One hopes the leadership will wake-up and address some of these woes.
” We are a nation of fools who only know who will play in the big game on Saturday”
Again, an unkind statement not entirely true. I regularly see labor activists all over St. Louis doing the good fight. Some of these activists (both active and retiree) have some sharp minds and I am proud to stand with these folks.
Fools? I think not
and our Union leaders still scream for amnesty and settle for 1 trade {tire} deal instead of the 2009 T.R.A.D.E. ACT,this absurd organizing strategy,put into play by the socialists/communist factions of our Unions must come to an end and a return to American Unionism put forth.They say the Meaney style of organizing wasn’t working…if that is so it was a lack of organizing ,not a failure of ideology,that reduced marketshare.Wake up and DEMAND fair and transparent Union elections and FULLfinancial disclosure NOW.2010 is coming and this leadership’s DSA driven agenda will be remembered,for the sake of our Unions they must be removed.
We must remember that “leadership creates consciousness” and with a leadership of the trade unions in the hands of 2nd rate business unionists who see the membership as voting cattle or dues money what kind of thinking do you think will prevail in a society in which the Commander in Chief is a mass murderer and sends our money to the banks, Wall Street, insurance companies, etc. (and of course the previous Commander and Chief was the same - both defenders of private property and the all might dollar).
Leadership is key in creating a chance for a future for the young of this society and world and that leadership will be forged in struggle that the present pack of misleadersh shies away from like Dracula from sunlight. The history of labor INTERNALIONALLY is that we never gained a thing without struggle. Since we know that and can see that the political/economic system that we live under is broken then the wise amongst must see the need to replace it. That will take major struggle and steeled leadership in front of a political party that has as it’s goal the emancipation of labor, the smashing of capitalist and the building of a workers state. Those that labor must rule!
This post was approved then removed? Why?
When you say “571,000 people abandoned the labor market” do you mean they stopped looking for work or they failed to report and certify their unemployment with their State agency?
I am offended when I hear the President say “thousands others have given up looking for work”. When the State and Federal governments deny Unemployment benefits because we have been unemployed “too long” in this economic crisis, I feel like the State has given up on me being employable.
But I assume most people whose unemployment expired stop reporting their status to the Unemployment Agency. That gives politicians and those still unemployment an excuse to legislate for any assistance for surplus workers who no longer needed by Corporate America and left to die.
If you are unemployed and still seeking a means to earn the privilege of food, shelter and medical care, KEEP REPORTING YOUR UNEMPLOYED STATUS TO YOUR UNEMPLOYMENT AGENCY. Call your government officials with your concerns. Research what has gone wrong like the FRAUD of FIAT MONEY based expansion and why today is a result of a successful strategy of the Elite to acquire more and more wealth through wage slavery.
The masses need to take action! We need to become educated, realize that what we “know” through mainstream media and even Union interests like AFL-CIO is what powerful people want us to know. Even the interests that take action that benefits workers and the middle class are part of the web of collusion keeping the masses ignorant, dependent and helpless to affect meaningful change.
Government is the wife of Industry. Union’s emerged out of necessity. Since then, we the blue collar and white collar workers, professionals, managers and most “executives” have become complacent. As long as our needs were met, we believed it was due to our decisions and qualifications. Now, as more and more people become unemployed while the “lucky” ones are required to do extra work at unpaid hours for stagnating or declining wages with fewer positions paying health insurance and co-pays/deductibles skyrocketing, the Senate Finance Committee plays word games to eliminate any true Public Option, mandating residents buy health insurance because they exist WILL THE MASSES WAKE UP?
If you want to hear radio-quality music that will probably never be allowed to air publicly that addresses these issues, go to http://www.sassyalternativemusic.com. The Download page has full-length previews of songs in lots of styles. The two specific ones I’m thinking of are “Incite Social Evolution” and “Fiat Greed”.
The unemployed need to use the time we spend crying about the cards dealt to us to research news mainstream media will not publicize and realize the deck is and always has been stacked against the middle class. Then do something. Call your Government Officials; tell your family & friends. Write your news papers, websites, post comments in forums and blogs.
Nothing will improve unless and until the masses forget our petty arguments and unify against the strategy of the elite.
Hmm. No idea why your post was approved then deleted. Looks like an error on our part.
Our apologies and thanks for submitting your comment again!
Tula