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Economy Adds 431,000 Jobs—Barely Enough to Stay in Place
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Some 431,000 net new jobs were created in May. A whopping 411,000 of those new jobs were temporary U.S. Census jobs, while private employers added only 41,000 new jobs in May. Overall, the unemployment rate dropped to 9.7 percent, down from 9.9 percent in April, according to a report released this morning by the U.S. Department of Labor.
AFL-CIO President Richard Trumka said the low number of private-sector jobs is further evidence the recovery is still fragile.
The Economic Recovery Act saved us from a second Great Depression, but it was not sufficient to power strong and sustained job growth, and its effects are expected to wane in coming months.
He called on Congress to do more to create jobs and sustain the recovery.
Most immediately, Congress must move quickly to restore health care benefits for the unemployed and provide aid to states to maintain jobs and vital services. We already see state and local governments shedding 22,000 jobs in May. Without further action to offset state budget shortfalls, these job losses will offset temporary gains from federal spending.
The underemployment figure, which includes those who are too discouraged to look for work or are working part-time out of economic necessity, dropped to 16.6 percent in May, from 17.1 percent in April, and some 27 million U.S. workers are without jobs or full-time work. In the private sector, manufacturing added 29,000 jobs; temporary service jobs, 31,000; and mining, 10,000. Construction jobs declined by 35,000.
The May unemployment rate for black workers improved to 15.5 percent and for white men to 8.8 percent.
Writing on Firedoglake, David Dayen points out that
while temporary federal government jobs are rising because of the Census, permanent local government jobs are going away. State budget cuts could lead to as many as 900,000 jobs lost in 2010. And Congress decided last week to do nothing about that, cutting money in a jobs bill for the states to balance their Medicaid budgets.
Economists say monthly job creation must be 350,000 or more just to begin to make a dent in the unemployment rate. Lawrence Mishel, president of the Economic Policy Institute, (EPI), says today’s jobless report shows “nothing closely resembling the job growth needed to dig us out of our very deep hole.”
The number of long-term unemployed workers continues to grow. In May, some 6.8 million U.S. workers were out of a job for 27 weeks or longer, up from 4 million a year ago. In May, 46 percent of unemployed workers had been without a job for 27 weeks or more.
The long-term jobless figures clearly show how important it is that Congress extend unemployment insurance (UI), a move that is a key part of the AFL-CIO Jobs Agenda. Late last week, the House voted to extend unemployment benefits to millions of long-term unemployed workers who have been jobless longer than 26 weeks. But the Senate failed to vote on the measure before going on recess, meaning up to 1.2 million workers will lost their unemployment insurance by the time the Senate returns from vacation.
Speaking earlier this week at Carnegie-Mellon University in Pittsburgh, President Obama said it is critical lawmakers extend unemployment insurance for several more months
so that Americans who’ve been laid off through no fault of their own get the support they need to provide for their families and can maintain their health insurance until they’re rehired.
Last week, a panel of leading labor economists pointed out that extending unemployment benefits not only would support individual workers who have been unable to find jobs, but also would stimulate the economy and help create more jobs.
At the EPI forum, economists stressed that money sent out in the form of unemployment insurance is quickly returned to the community, effectively supporting local economies. Harvard economics professor Raj Chetty said the median unemployed person had almost no cushion—only about $250 in liquid savings—at the time of job loss, resulting in a sharp drop in spending on essentials, including food.
Jesse Rothstein, chief economist for the U.S. Department of Labor, summed up the nation’s jobless situation:
If you give money to someone who is unemployed, they are going to spend it the next day.
In his statement, Trumka adds:
America’s workers have paid far more than their fair share for the economic crisis—they’ve paid with their jobs, with their homes and with billions of dollars to Wall Street.
Today’s challenge is jobs. Unless Congress addresses this challenge with the focus and energy they brought to rescuing our banks, not only will a generation of workers be doomed to unemployment and the recovery itself put at risk, but dealing with our long-term fiscal problem will be all the more difficult.
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5 Comments
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The lack of concern shown by the government, Federal, State and City is completely understandable when you consider that they are in the employ the the wealthy in this and every other country. Both the Democrats and the Republicans support the needs and the wishes of the employers and the banks and thus the bailout it quite understandable. The phoniness of the temporary census jobs is even more reprehensible when you learn that these poor people are not even being paid. It’s a ruse. The Federal government is padding its statistics in order to make it seem that people are working when they are not. But the real problem is the union leadership who continue to tell workers to vote for their enemies rather than organizing a militant strikeback which has the only chance of winning any demands. They are in bed with the employers and thus attempt to fool us with schemes like voting or lobbying rather than mobilizing the millions of workers who do the work so that the employers can profit from our labor. The situation will grow ever more dire and thus reliance on the capitalist parties will only increase our suffering.
get rid of all the illegal aliens, make them get off the welfare line. that would help enormously
I am not going to get rid of all the criminal Martians, or what have they brainwashed you into calling your fellow workers fleeing poverty and repression? – oh, yeah, “illegal aliens”. I am not going to do it – you do it. But first come to grips with the fact that there are 10 million of them. When you figure out how to deport them all, then you can tell all of the governments of Europe and England and so many other countries how to do it as well, so that hungry, ingenious immigrants will not continue to move there tbecause they are human so they must feed their families just like us non-immigrant humans.
On another contribution, one sweet, loving person said we should confiscate all of their belongings, and then deport them.
Please consider my simple plan. We have to agree that it is the superrich, not immigrants, who are in total control and manipulating us all. They are much fewer in number, and have not just a lot of wealth, they have all of the wealth that our sweat and blood produces. We pick an island somewhere, arrest all of the superrich, TAKE BACK ALL OF THEIR STOLEN WEALTH, and then deport all of them. Anyone willing to help us wiith that task, and willing to work and sacrifice toward that goal, I welcome to this land of immigrants.
It seems to me that we are not getting the message out about the pain that labor is in at the moment. Yet, the politicians feel it is OK to leave congress before passing a jobs bill. Banks were bailed out immediately, and they caused the damage. When is labor going to be treated on an equal footing?
431,000 – 411,000 = 20,000 = basic 3rd grade math
Don’t piss on my leg and tell me it’s raining!