Report: Black Wealth Has Nearly Disappeared
The failing economy has caused wealth for black households to all but disappear, according to a shocking new report by the Economic Policy Institute (EPI). Since 1983, median wealth for black households fell by nearly two-thirds from $6,300 to $2,200 in 2009—a decrease of more than 65 percent.
This means half of black households have less than $2,200 in wealth. Among white households, median wealth fell substantially since 2007, but at $97,900, remains higher than the 1983 level of $94,100. White median wealth is now 44.5 times higher than black median wealth. Read the report here.
Jobs Crisis Hits Young Workers Hard
The unemployment rate for young workers between ages 16 to 24 has skyrocketed as millions of young people have lost jobs and school enrollment has steadily increased over the past decade.
The jobless rate nearly doubled among young workers to a peak of 19 percent in the fourth quarter of 2009 and has remained high, averaging 17.4 percent in the second quarter of this year, compared with 6.7 percent for older workers and 9.1 percent for all workers.
At the same time, the proportion of workers 55 and older in the workforce has increased as the Baby Boom generation ages and older workers are delaying retirement, especially following huge drops in home values and investments during the recession.
Economy Adds Only 39,000 Jobs; Unemployment Rate Jumps to 9.8 Percent
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Today’s news that only 39,000 jobs were created last month lifting the unemployment rate to 9.8 percent should be sounding alarm bells all over Capitol Hill, where congressional Republicans are blocking restoration of unemployment benefits for long-term jobless workers. More than 890,000 people (and counting) have lost their unemployment benefits (UI) since Dec. 1.
AFL-CIO President Richard Trumka said of today’s report:
The disconnect between Washington and working families is dangerous and alarming. We need to get serious about investing in job creation now and we need an immediate, one-year extension of jobless benefits. Without dramatic action to invest in America and create jobs, our economy will not see the robust and sustained recovery we need to put millions of Americans back to work.
Labor Day 2010: America’s Workers Losing Ground
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The Economic Policy Institute (EPI) this week published three reports showing the extent to which America’s workers are losing ground this Labor Day: People are dropping out of the workforce because there are no jobs and those workers who have jobs are earning less.
First, there are not nearly enough new jobs. Nearly 15 million workers are unemployed, nearly a quarter of whom have been seeking work for more than a year. Even though unemployment rose slightly to 9.6 percent last month, it’s 0.5 percent less than it was last October. But that’s not because the economy has been generating that many jobs. EPI economist Heidi Shierholz found that the percentage of people who were actually employed held steady even as the population increased. Translation: The improvement in the unemployment rate has been almost entirely due to people dropping out of (or not entering) the labor force because of the lack of jobs. Check out Shierholz’s report, “Employment Growth Continues Subpar Performance,” here.
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.
One Year Later, the Recovery Act Is Working
If there’s one thing Americans agree on, it’s that we need more jobs now. That reality is often twisted by conservatives, who say the one-year-old economic recovery plan has failed. But they are just wrong.
The AFL-CIO is pushing for much greater investment to create the millions more jobs we need to get us out of our current hole. Check out the federation’s five-point plan to put America back to work here.
The fact is that the American Recovery and Reinvestment Act is still working, generating more than 2 million jobs and laying the foundation for future economic growth.
Biden: Strong Unions Needed to Build Middle Class
The nation cannot rebuild its middle class without strong unions, Vice President Joe Biden said today. Biden said he and President Obama believe it is impossible to grow the middle class without growing unions.
Biden, who chairs the White House Task Force on Middle Class Families, met with a panel of scholars assembled by the Center for American Progress (CAP) and Economic Policy Institute (EPI) to discuss the challenges facing America’s middle class in the 21st century economy.
At the live webcast event, EPI President Lawrence Mishel said unions set standards in the workplace. Decent standards help ensure “employers are not competing to see who can make the jobs worst, but who can make the products better,” Mishel said.
Poll: Creating New Jobs Trumps Fixing Deficit
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With unemployment at the highest rate in 26 years, most Americans want the government to create more jobs before it worries about the deficit.
A new survey of public views of the economy, released today by the Economic Policy Institute (EPI), shows more than eight of 10 Americans (83 percent) see unemployment as a big problem today.
While voters have some concern about the growth of the federal deficit, job creation is far and away their top priority. In fact, by a margin of 53 percent to 42 percent, voters are more concerned about rising unemployment rates than the rising federal deficit.
The Tracking the Recovery survey was conducted among 802 registered voters nationwide from Sept. 21-23 by Hart Research Associates for EPI. The poll takes an indepth look at Americans’ experiences in this recession, their expectations for the year ahead, their views of the government’s role and degree of success so far and their priorities for further government action. Click here to download the poll results.
Slow Wage Growth Puts Damper on Labor Day
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This Labor Day, many American workers will be watching their pennies as much as they watch the annual parades. This year, working people across the board are being hit with an unprecedented array of economic problems, ranging from a lack of jobs to reduced wages for those who have jobs.
The impact of the recession goes far beyond those people who are unemployed or underemployed. A combination of slow wage growth, mandatory unpaid leave and a drop in benefits is going to make it harder for the economy to recover, says a leading economist.
During a conference call with reporters today, Lawrence Mishel, president of the Economic Policy Institute (EPI), said the recession is hitting working people hard across the board, including white-collar workers, blue-collar workers, women, men, union members, nonunion workers and both college and high-school educated workers.
June Job Loss Hit Most Industries
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The 437,000 jobs lost in June were spread throughout most U.S. industries, according to the Labor Department’s Bureau of Labor Statistics (BLS).
Manufacturing employment fell by 136,000 in June, while employment in construction decreased by 79,000. Job losses in professional and business services shot up in June, with the industry shedding 118,000 jobs. Retail trade employment was down by 21,000 in June.
Education and health care employment increased by 34,000, and employment in government dropped by 52,000 in June.
The overall unemployment rate increased to 9.5 percent in June, putting it at a 26-year high.
AFL-CIO President John Sweeney said today’s jobs data show that creating jobs is the key to a full economic recovery.
Congress and the Obama administration need to continue to remain focused on stimulus efforts to end the recession. Additionally, this is not just a problem in the United States, but at this stage, job loss is the vortex of the global economic crisis. To address this problem we believe that all governments should focus an extra 1 percent of GDP [gross domestic product] for stimulus focused on job creation.
