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.
What’s Wrong with This Picture?
Behold, the winner of the World Press Photo of the Year 2008 award.
For those outside the United States, this is the image of our nation:
U.S. Economy in Crisis: Following eviction, Detective Robert Kole must ensure residents have moved out of their home in Cleveland, Ohio, 26 March 2008.
600,000 Jobs Lost: How Bad Does It Have to Get for Republicans to Act?
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With today’s unemployment report showing nearly 600,000 jobs lost in January—worsening the U.S. unemployment rate from 7.2 percent to 7.6 percent—will obstructionist Republicans in Congress finally move the economic recovery bill?
From Bloomberg:
“Last month’s losses mark the first time since records began in 1939 that job cuts exceeded half a million in three consecutive months.”
While the official unemployment rate of 7.6 percent is really bad, the unofficial rate—which includes underemployed workers and those who have become too discouraged to look for work—is 13.8 percent. Some 21.5 million workers are either unemployed, working part time for economic reasons or dropping out of the labor force because they can’t find work.
Bush Deals Last-Minute Insults to Workers’ Rights
The Bush administration couldn’t resist taking a final slap at human rights. In Bush’s final hours in office, he implemented on Friday a trade agreement with Peru despite calls by Congress, unions, environmental and human rights groups to delay action to ensure that Peru’s laws meet its commitments before the agreement enters into force.
The new “reforms” passed by Peru’s Congress last week are inadequate to protect the environment, promote worker rights and ensure access to affordable medicines, as required by the agreement.
At the same time, the Bush Labor Department’s Office of Trade & Labor Affairs rejected a petition, the first of its kind, under the labor provisions of the Central America Free Trade Act (CAFTA) The petition, filed in April by six Guatemalan unions, with the support of the AFL-CIO, involved five cases where employers suppressed, sometimes violently, workers’ efforts to form a union, and the government failed to protect worker’s internationally recognized rights.
AFL-CIO Policy Director Thea Lee says these two actions:
….were a parting shot of disrespect by the Bush administration.
In a last-ditch effort to avert criticism and secure implementation of the agreement before Bush left office, the Peruvian government approved a series of legislative reforms Jan. 13 that exacerbate current environmental problems, such as mass deforestation, and do not adequately address labor rights, labor and human rights groups say.
Here is Susan Ellsworth, associate representative with the Sierra Club:
The U.S. Congress voted for an FTA that members believed represented a new day for environmental protection and worker rights on trade agreements. This is not what will happen if Peru rushes through flawed laws at the eleventh hour.
Many members of Congress, including President Barack Obama, supported the U.S.-Peru agreement in 2007 because it included new and stronger provisions to promote worker rights and protect the environment. But the rush to certify the FTA now threatens to undercut these advances and lock inadequate laws into place.
Lee adds:
Peru’s labor laws still fall far short of meeting International Labor Organization standards, and we were deeply disappointed with the Bush administration’s decision to rush implementation without first securing compliance with the agreement’s provisions. This represents a wasted opportunity and shows poor faith on the part of our own government.
The Bush administration refused to even consider the Guatemalan unions’ complaint even though four union leaders and/or their family members were murdered in that country since the agreement was approved by Congress and many others have been victims of attempted murder or have received death threats. Workers who attempt to form or join a union, bargain collectively or conduct a strike still are routinely fired illegally, the unions say.
A Quick Tour of the Bush Legacy
* In the Laugh-if-it-Didn’t-Hurt-So-Much category:
In an interview with The Associated Press, Vice President Dick Cheney also said that President George W. Bush has no need to apologize for not foreseeing the economic crisis.
“I don’t think he needs to apologize. I think what he needed to do is take bold, aggressive action and he has,” Cheney said.
* Laugh and Hurt, Part II: Bush took such “aggressive action” on the economy, he must have worried a lot about it. NOT. In fact, when asked by People magazine about which moments from the past eight years he revisited most often, Bush talked passionately about the pitch he threw out at the World Series in 2001:
“I never felt that anxious any other time during my presidency, curiously enough.”
Obama Economic Plan: Create Made-in-America Jobs
President-elect Barack Obama today laid out some of the details of his economic recovery plan. While the current President focuses on giving the Medal of Freedom to the leader of a country that has the highest number of trade union murders in the world and on spending nearly $600,000 on new china for the White House days before leaving office, Obama is moving to clean up the Bush economic mess. Giving the Democratic radio address this morning, Obama said:
Our first job is to put people back to work and get our economy working again. This is an extraordinary challenge.
Disaster: Unemployment at 7.2 Percent. Real Rate 13.5 Percent
The jobless numbers out today are worse than even the most pessimistic analysts imagined: 524,000 jobs lost in December, pushing the nation’s unemployment rate to 7.2 percent. Under the Bush administration, 2008 has become the worst year for job loss since 1945, with nearly 2.6 million jobs lost last year alone. The federal Bureau of Labor Statistics reports that 11.1 million of America’s workers are unemployed.
December was the 12th straight month of job loss and included a loss of 21,400 jobs in auto and parts industries. From Bloomberg:
Manufacturing, which makes up 12 percent of the economy, shrank in December at the fastest pace in 28 years, Institute for Supply Management figures showed. Payrolls at builders dropped by 101,000 after decreasing 85,000. Financial firms reduced payrolls by 14,000, after a 28,000 loss the prior month. Service industries, which include banks, insurance companies, restaurants and retailers, subtracted 273,000 workers after a decline of 402,000.
Bush’s Auto Industry Loans Come With Unfair Conditions for Workers
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After letting the auto industry hang for weeks following the refusal by Republican senators to approve a loan to help automakers get through the end of the year—and a day after Chrysler said it will shut down all 30 of its North American plants for at least one month, putting 46,000 employees out of work—George W. Bush announced his administration’s offer to automakers today.
Bush says he’ll give automakers $17.4 billion in emergency bridge loans. Some $13.4 billion would be available this month and next—$9.4 billion for GM and $4 billion for Chrysler. Ford Motor Co. has said it does not need immediate help.
10 Reasons to Support the U.S. Auto Industry
Chances are the upcoming holiday get-togethers will provide plenty of encounters with relatives and friends who are against helping out the auto industry. Opponents of a bridge loan have plenty to say. And we should, too. Here’s a quick list of reasons for countering arguments by Uncle CEO and Cousin It.
1. Unlike the taxpayer giveaway to Wall Street, the funds for the auto industry are loans. These loans have to be paid back. The Big Banks who got our $700 billion get to keep it.
2. It’s cheaper to support the auto industry than to let it die. Anderson Economic Group and BBK Ltd. determined that over a two-year period, a $30 billion bridge loan with only half of the amount repaid would result in a $16.4 billion cost to taxpayers in lost sales, taxes and jobs, while a bankruptcy would cost $65.9 billion when costs for pensions, unemployment insurance, loan losses and professional and other fees are added.
Bush Denies Bargaining Rights to 8,600 Federal Workers
In a final-days attack on workers’ rights, President Bush yesterday issued an executive order that denies collective bargaining rights to about 8,600 federal employees who work in national security, law enforcement and intelligence.
Nearly 1,000 of the workers currently are represented by a union, and some have been for more than 30 years. The biggest group affected by the order is the 5,000 employees of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), which is now part of the Justice Department.
Peter Winch, national organizer for AFGE, the largest federal employee union, says the union is determined to fight the executive order.
