because it’s just extending a bunch of tax policy and related items that we need to do.
Only today did the Senate Finance Committee release its first take on jobs. The immediate need is for passage of unemployment insurance (UI) because it will expire for millions of workers Feb. 28, unless Congress—specifically, the Senate—takes action. COBRA also must be extended to help unemployed workers maintain health care.
The White House’s new economic report estimates the economy would create an average of 95,000 jobs a month this year, rising to 190,000 a month on average in 2011.
Yet there must be 100,000 jobs created per month, just to stay even, let alone fill the gaping hole that is the nation’s unemployment crisis. The nation needs more than 10 million jobs to get back to 5 percent unemployment, the rate we had before the recession started.
The economy lost 20,000 jobs last month, and the rate of unemployment declined to 9.7 percent, a figure the Economic Policy Institute (EPI) describes as a statistical blip, not the beginning of a trend toward full employment because the January data was based on differing surveys. As EPI economist Heidi Shierholtz describes it, this apples-to-oranges comparison means the drop in the monthly unemployment rate
can largely be attributed to the higher volatility of the much smaller household survey. Given what happened in the establishment survey, one would have expected the unemployment rate to hold steady or increase slightly in January.
The White House is forecasting the jobless rate will average 10 percent this year. But the generic jobless rate—as bad as it is—hides a lot. Here’s a look at the hardest hit in the jobs crisis.
The workers losing jobs are those who had almost no income to begin with. As Bob Herbert pointed out this week:
The highest group, with household incomes of $150,000 or more, had an unemployment rate during that quarter of 3.2 percent. The next highest, with incomes of $100,000 to $149,999, had an unemployment rate of 4 percent.
Contrast those figures with the unemployment rate of the lowest group, which had annual household incomes of $12,499 or less. The unemployment rate of that group during the fourth quarter of last year was a staggering 30.8 percent. That’s more than five points higher than the overall jobless rate at the height of the Depression.
The jobless rate of 16.5 percent for black workers is much higher than the national jobless rate of 9.7 percent. The Christian Science Monitor goes on to point out that the jobless rate is astronomically higher for black teens—43.8 percent—than for white teens, at 23.5 percent.
Long-term unemployment (those without a job for 27 weeks or longer), is off the charts. More than 40 percent of the nation’s unemployed workers are without a job for more than six months, a new record. In January, that means 6.3 million unemployed workers have been out of a job for more than six months.
The longer workers are out of a job, the harder it is for them to get one. With the massive numbers of unemployed workers, employers are more likely to hire a worker who is more recently unemployed, than one who has been out for months, skills and other factors being equal. This is why the group on the Hill needs to extend UI ASAP. According to National Employment Law Project estimates, of the nearly 1.2 million U.S. workers facing a cut off of benefits in March alone:
- 380,000 workers will exhaust their 26 weeks of state benefits without accessing the temporary EUC [emergency unemployment compensation] extension program or the permanent federal program of Extended Benefits.
- Another 814,000 workers will not be eligible to continue receiving EUC past their current tier of benefits.
Richard Duncan, who works for the Tennessee AFL-CIO technical assistance program, has met many unemployed workers. The assistance program helps union workers who have been laid off (see video above).
I’ve traveled the state of Tennessee and seen an enormous number of union brothers and sisters lose their jobs. Since 2006, I’ve seen the same people. They lose their job at one facility. Then they go to another facility, then there’s an additional layoff and they lose their job again.
This downward cycle must be broken. And the ice in brain and heart, melted.



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Create 95,000 jobs a month. Where? Is Wal-Mart hiring? How many of the 18-25 demo will end up joining the military, the nation’s main employment opportunity today. How sad is that? The unemployment numbers will improve though, right, neoliberals?
Bill Clinton Hospitalized Columbia Presbyterian.
Obama is just disgusting.
What nut would Bail Out Banks in 2009 (for 23.2 trillion) and in the year 2010 say Bankers deserve a Bonus? Obama
Where is FDR when you need him? we know Obama does not like FDR, he likes Reagan.
Try six years for some of us (who have passed the magic age of 50). Although I guess a parttime minimum wage position puts me in the under-employed rather than unemployed category.
Although I will say, the job search sites ARE picking up a small bit. I seem to be finding about a job a week to apply for (those that I match the criteria at better than 90% – less than a 90% match, it isn’t really worthwhile to even attempt to try for it these days)
Why does the Republican Party hate Americans?
I’m verra interested to learn the answers to those questions SD.
Sounds like neoliberal claptrap.
That is, more of the same …
DW
Wal-Mart hiring? Actually, no.
MSNBC reporting no heart attack, he went in ahead of time and received a valve stent, fairly common procedure – they have yet to say whether he’s been released or not
sorry for the o/t Tula, how ya doin’ Rebel Girl ? :D
Hi, cb12:
Good to hear from you. We’re digging out in DC. Hope you’re doing well
When is this miracle to begin?
Perhaps it is like Obama’s “excellent” Presidency?
This year?
Sometime …
And, by next year, 190,000 new jobs a month?
Doing what?
Where?
For how much money?
(Some “other” questions that won’t be answered, you don’t want to look a gift horse too closely in the mouth, ‘cuz that is not where it puts its money.)
How deep is it?
Y’all must be subject to a good deal of other “stuff” being shoveled, I imagine, Tula.
Only had about three feet, here in Pittsburgh.
(Makes buying shoes a bit of a drag … ;~D)
DW
*waving*
Ain’t seen ya in a bit.
Just heard. He supposedly had 2 stints put in one of his coronary arteries. Not a fun procedure as one who recently had the same thing done after a major heart attack. I was lucky having it right in the ER in front of the Dr. Hope he recovers ok.
I agree. I’m 60 and I’ve all but given up, especially since having a major heart attack last summer. It sucks to work your whole life and then just be tossed to the curb. This society is ruthless and if both parties stay on course it will get even worse. I’m more worried now about my two colleg age kids. What are they going to do?
Good piece. Leave it to The Onion. WaPo and NYT would be kissin’ his ass in any article about massive layoffs.
If no one is spending, only the Federal Government is able to prime the pump. The private sector will gradually hire and the workers will spend. It would be far better to overspend now than constrict the effort with phony deficit scare.
Unfortunately it is about neglect of the working poor, sick and less fortunate.
Their voice is but a million sighs and whispers, rarely heard above the din.
It is about listening closely to them and addressing their needs with all due haste and vigor. We are responsible for helping them become responsible. A job is a good start. Most everyone wants to work and there is much work to be done. Let’s get going. Now.
I have to count my blessings. Have a bookkeeping job at a mom & pop realty company. Could be there the rest of my life if the business doesn’t fail, which really isn’t likely. I’ve certainly made more money in my time but at least I’m employed. At 66 I wouldn’t have a chance in the job market.
Yes. Our children deserve better, Blutodog, much better.
And it falls to us to insist upon that truth …
The Divine Right of Money and political kabuki be damned.
DW
I’m sorry but these numbers don’t make sense. If the only people affected are those that don’t have much disposable income to spend we wouldn’t be in a recession – depression.
And all those realtors – builders, etc., where did they go?
Tell me about it–I have only been able to find temp assignments for the past 3 years, and I went 11 months without even that until I picked up a part-time (19.5 hours) assignment last November. That’s slated to run until April or May, may or may not be extended. I still get some unemployment because I’m only part-time.
Yep I’m 61 and lost the job last Nov. I’m not even looking. It will be close every month but better than 99% of everyone else. Yes every time I do the math on o answer to the problem it looks like enron accounting to me. Pie in the sky
Thanks for yet another informative and well written post Tula. My favorite part of Thursdays.
On the upside of employment our small central Texas machine shop is holding steady. A fairly new product that makes drillin an oil hole easier and faster is really taking off. We also some how managed a proprietary part for that big airplane maker that continues a steady stream of orders. Even brought in a new big swing long bed lathe in late December.
I know how important manufacturing is to you so thought you might like an update from the trenches.
Whatever happened to “we are all Keynesians now” anyway?
Obama needs to move to Direct Jobs: federal hiring of targetted unemployed. If some of them dig holes and the others fill them up for a couple years, that’s what we need until it’s time to privatize the holedigging/filling-up industry and KBR & Xe are prepared to take it over from the feds.
Can you imagine the uproar from Democrats if a GOP President was prepared to preside over endless 10% unemployment throughout this year and well into the next? This is utterly unacceptable from a human standpoint, and critically injurious from a political standpoint.
“Brain” especially. The continued long-term unemployment at this level isn’t sustainable. The tax base will shrink, and the consumer demand will as well. Anyone with a working mind (at least, any American with one) should know this almost instinctively. Services will be cut, which will lead to more insecurity. Yet nothing that the Democrats and Obama have done, to say nothing of Republicans, seems to acknowledge this basic truth.
Well you know according to wingnuts WW2 not Keynesian economics pulled us out of the Great Depression (nevermind WW2 was massive government spending).
I await our impending war with Iran to improve the economy.
There’s no need to do anything even remotely that useless. There are repair and construction jobs on roads and other transportation facilities that have remained undone for almost a generation. There is a new high-speed Internet that we should have had years ago. There’s a smart power grid to build.
I could go on, but the basic fact is that there’s plenty we could spend money on that would benefit us in the long run, and would employ people who don’t have skills, at least initially. Just about anyone can learn to drive a forklift or a bulldozer, given a little time and some practice.
Instead, we’re wasting that money on wars on drugs and terrorism, and on a military that’s far more capable than it needs to be. At some point, those priorities need to change.
Excellent, so glad to hear! Manufacturing is key to the future of this country but some in public office, names don’t need to be named here, don’t make the connection between ‘making things’ here and a strong economy.
Here’s a great piece by a smart historian you’ll enjoy:
‘Green’ Jobs go to China, Too
American stimulus funds may well boost employment, but where?
By Judith Stein
Philadelphia Inquirer
http://www.philly.com/inquirer/opinion/20100204__Green__jobs_go_to_China__too.html
Solar panel technology. Hecho en Chine.
Good to see you again! Haven’t seen you on here in awhile. And you are absolutely correct. Infastructure alone is in shambles while the political fatcats pay nothing more than lip service to real jobs. Rather than helping, they’ll just claim they saved that many jobs every month. Much easier for everyday folks to understand I guess.
Windmills, too.
Thanks for that!
It is so difficult to explain to many people the critical role manufacturing plays not just economically but in national security as well. We are
cripplingdestroying our future by not maintaining a thriving technologically cutting edge manufacturing base. This would also include restoring federaly funded research and higher education that is affordable for all.Yes, I’ve been a bit busy lately, so I’ve mostly lurked here. Good to see you, too.
I wonder at the motivations of politicians. Sometimes, saving jobs is enough, but it’s not when so many are already out of work. Making jobs has to be a priority now, and to me that means making jobs that will make our country and the rest of the world better. There are so many such jobs we could be working at that it’s enough to make you weep.
Many people I talk to worry more about the increase in prices if stuff is made here. They don’t seem to understand, or don’t want to, that the loss of our manufacturing base is at the root for our current economic woes.
I can attest to this. I worked in the defense industry for a long time as an EE and a computer scientist. It was disturbing to realize how much of the stuff we were building or modifying came from other countries. We couldn’t possibly sustain a long war nowadays without the tacit permission of China, Japan, and a number of other countries.
Seventy years ago we were the arsenal of democracy. We’re little more than the salesmen and repairmen of the arsenal today.
Honestly, it makes no sense that they all seem to be commiting political suicide and just don’t care.
Unless you realize that most of them will be just fine, regardless. Many, perhaps even most, don’t need the jobs they now have. To them, political suicide is really just a career change.
Great read Tula, thanks . . . no work at all 3 years in 5, in and out of work going back to Fall ’03, when things began to slip in housing construction out here in Sacto, CA . . . .
I’d bet the unemployed (long term/chronic included) and underemployed numbers are easily past 20% here.
And BTW, great comments from the Pups above . . . and congrats to those working.
I am waiting for my last UI check. Next month will be a year since I had a job. The continuing body blows have taken so much air out spirit. Some days I wonder how I got to be 55 and jobless. I know why but I wish someone in Congress would get a clue, it would be so refreshing.
I am part of the underemployed – I’ve been trying to give my job away on FDL nobody wants it, it seems, at $10.05 and my last rase was .05 you don’t want it either, I can assure you.
There are really only two common sense solutions to this -
Give the unemployed $10,000 each (individual or family)
Give the under employed $5,000 each same as above
OR
Find 2 Trillion Dollars and rebuild EVERYTHING in America.
All these tax holidays and tax cuts and other bs tactics are not going to do what they want it to do.
Guess you are right. Just wondering though as for the political suicide, when it’ll get bad enough that these “rich” politicians start to fear for their well being. Something is going to give somehow.
Some of those realtors and builders went bankrupt.
But you are pointing out an interesting thing about that $12,500 figure. It means that the family does not have even one minimum wage job. Most likely a large number of those people are collecting unemployment insurance or public assistance. The fact that there is a 30.8% unemployment rate means that a whole lot of families are trying to survive on a one or more part-time jobs that add up to less than 40 hours a week employment.
I vote for rebuild everything in America.
It would work… You don’t have enough construction workers to do all the things that need to be done including building high speed rail or the smart grid or nationwide WiFi/Wired Broadband.
But the estimated cost is 2 Trillion dollars, can we borrow 2 Trillion dollars? Will the private sector step up and help rebuild America?
Those are questions that have to be asked and answered…
Can we borrow $2 trillion dollars? Maybe the Chinese will lend only if they think they will get it back through exports. Sure. We can borrow a couple of trillion to save the economy.
Will the private sector step up and help rebuild America? Yep. And I bet that Bechtel, Lockheed-Martin, Halliburton and the other usual suspects will be at the head of the line.
You don’t have enough construction workers now, but let those contracts and watch how many folks will become construction workers. For WiFi/Wired Broadband you have significant idle capacity.
And if someone bothers to run the ROI, that 2 trillion will probably be paid back in lower costs to business and government in about 5 years.
“Digging holes and filling them up” is a Keynesian metaphor for paying people directly to do just about anything.
Of course there’s lots to do. Thanks for that list. Why America isn’t well-started on it I will never understand. We need to start yesterday.
“EVERYTHING”? Really? How about broken things first and then move on to making more new stuff?
Finding $2 Trillion would be useful except it would inflate the money supply more than we need (probably).
I suggest we push business to take it’s excessive passive resting cash and put it to work employing people. The fundamentals ought to be sound enough just now and Congress is going to have the new regulations in place quite soon, so there’s really no reason for business to wait.
Just think, if a handful of the biggest businesses are trend-setters and everyone follows their lead and they decide to sit tight and wait…how much money would businesses who follow their lead have a chance to make with all the big boys on the sidelines?
Just think of the power of a handful of the biggest businesses to (essentially) kill the economy whenever it suits them. They could wipe out some weak competitors. They could force capital-intensive firms to pay rent without receiving revenues. They could force retailers to lay off thousands of people and then later-on have to pay a lot of money to rehire. They could ruin a lot of people’s lives.
And think of that power play as a way of controlling government. Can Obama create jobs? No. Only business creates jobs. But, the public certainly blames the people in charge of the government if they don’t get jobs. Seems business has a great deal of leverage of government — don’t regulate us or we’ll “go Galt”, kill the economy and make you lose your next elections.
Not a pretty sight.
But, if businesses would jump in and hire they could break that force and start making money and give Obama credit where credit is due.