The May BLS jobs report was discouraging for millions still seeking a job in a weak jobs market. Only 54,000 jobs were created and the unemployment rate increased to 9.1%. About 125,000 jobs need to be created each month to absorb new entrants into the workforce. With that in mind, 71,000 more jobs needed to be created just to break even for the month. Recall that McDonald’s hired 62,000 in May . If not for McDonald’s hiring binge, would there have been a net job loss instead of a jobs gain in May?
The underemployment rate did improve slightly to 15.8% from 15.9%. Underemployment is when someone wants a full-time job but is working fewer than 34 hours a week.
Those seeking full-time work found the job market less friendly than those seeking part-time positions. The unemployment rate for those seeking full-time employment rose to 9.7%, while the unemployment rate for those seeking part-time positions fell to 6.3%. The quoted unemployment rate of 9.1% is a combination of those looking for full-time and part-time work. Working 34 or more hours a week is considered full-time employment.
Working part-time is often a struggle for those who want full-time work. ML from IL is an intelligent, B.A. educated professional researcher, paralegal, proofreader/copy editor and a national manager of customer relations. “I was unemployed for two years. I am now underemployed, working part time but continuing to look for full-time work, and earning 55% less than before. While I’m grateful to even be working, I struggle to financially survive every day. I wasn’t at all sure that I’d get to be at my daughter’s college graduation and wedding because I couldn’t afford the travel expenses without family help.”
ML’s financial struggles include keeping a roof over her head, “I’ve faced eviction twice during the past couple of years, but I am still able to pay rent, barely. It isn’t okay to live this way. I want to thrive, not just survive, but I need full-time, reliable work for that to happen.”
While the employment report was disappointing on many levels, it was particularly abysmal for the long-term unemployed. The number of workers unemployed for 99 weeks or more increased 14,000 to 1,934,000. Those out of work for more than 27 weeks increased by 361,000 to 6,200,000; 45.1% of all unemployed have been out of work 27 weeks or more, which is near a record level.
Navy veteran, software consultant, and licensed realtor Virgil Bierschwale of Harper, TX, has been working on and off for the past ten years. This isn’t because of a lack of effort, but because of various economic conditions ranging from the bursting of the tech bubble to the crash of the housing market. State and federal budget cuts suddenly ended some of Virgil’s software consultation projects. His search for full-time work wasn’t a lackadaisical effort, since he would “Apply for software jobs daily with no interviews.” Has he become discouraged about finding a job? “Yes, I’m ashamed to admit that I have, but I now realize I will no longer find work doing what I successfully did for so many years.
Virgil is the website designer and author of Keep America At Work where, in his spare time, he writes about the loss of American jobs and how to keep more jobs in America.
Virgil’s income has fallen from a high of more than $100,000 in 2003 to less than $20,000 today. His wants are simple; a full-time job and a place to call home, “I currently live in an old shack on one acre of land that I can buy for $70,000. This would be my first priority because it is way past time that I set down some roots and I’ve got everything that I need and want here which isn’t much these days.”
The participation rate — those employed or looking for work — remained at a historically low 64.2%, which signals a weak job market.
Another dubious record is that now it takes longer to find a job, 39.7 weeks, than at any time since data collection began in 1948.
“I have never stopped looking for a job through all my health issues, but I did slow the search down a bit after each surgery,” said Alexandra Jarrin who has been battling homelessness, long-term unemployment and health issues for more than two years. She has exhausted all available unemployment benefits and she constantly lives on the edge of being homeless.
Alexandra has been profiled previously about her work to bring 99er stories to Sen. Bernie Sanders. (99ers are the unemployed who have exhausted all unemployment benefits, which in some cases is up to 99 weeks.) Yet through all her hardships,Alexandra’s job search has remained constant, “I have continued my work search faithfully.”
As is the case with many long-term unemployed, Alexandra’s job search has encountered numerous obstacles. “A few places that seemed interested were no longer interested when they asked for my salary history.” She’s willing to work for substantially less than she has made in the past, but that presents its own challenges, “Once they see I have made a considerable amount of money in the past they are no longer interested. One company wouldn’t set up an interview until I gave them my past salaries and told them how much I wanted to earn. That puts you in a difficult position because you don’t know how they will perceive what you are asking for if it is so much less than you have earned previously. One person asked why I would be looking for a job in fast food when I held a substantial position in a corporation.”
Whether salary concessions, career changes or the need to update software skills, interacting with potential employers often seems hopeless to the long-term unemployed, including Alexandra,”There’s just no good way to appease them.”
What are Congress and the president doing to address a stagnant and possibly deteriorating jobs market? Nothing this year. The GOP controlled House has been directing their energies toward the debt ceiling debate, defunding Obamacare, eliminating Medicare for those 55 and younger, and abortion restrictions. President Obama touts the successes of corporate bailouts, the need to increase the debt ceiling and explaining the role of the US military in Libya.
Yet beyond the poor economy in general what are Americans most concerned about? Is it the deficit? No. Is it fuel prices? No. Is it taxes? No. Unemployment and jobs are the most important issue by an almost two-to-one margin.
The jobs issue has received limited attention in the House, but no legislative action that would help improve the plight of the long-term unemployed. The House Ways and Means Committee has conducted hearings on “How Business Tax Reform Can Encourage Job Creation”, “How Other Countries Have Used Tax Reform to Help Their Companies Compete in the Global Market and Create Jobs”, and the ill-fated H.R. 1745, “Jobs, Opportunity, Benefits, and Services Act of 2011″, which included the option for states to cut the duration of unemployment benefits. While these business tax hearings may have some long-term value, they won’t create a single job in the short term.
The economy has improved for some; American companies are reaping record profits, Wall Street players are snagging outsize bonuses and compensation, and government continues its bailout policies of failed institutions. The economic picture is not improving for the long-term jobless. Congress is again in recess, so any action on the jobs crises will have to wait.
Long-term unemployment will worsen and wreck the lives of millions more unless Congress, the president and the private sector take immediate steps that lead to the creation of good jobs. ML in IL stated, “It isn’t okay to live this way.” That also applies to Virgil in TX, to Alexandra in VT and to America as a whole.
Follow Michael Thornton on Twitter: www.twitter.com/layofflist
Tags: 99ers, BLS, congress, economic, economy, job creation, job loss, jobs, legislation, long term unemployed, Obama, unemployed, unemployment, unemployment rate
The following is a guest post from Jason Tabrys, who writes the National Liberal column for Examiner and at his own site Painespeak.com.
America’s Under and Unemployed Battlefield
“You cannot choose your battlefield, God does that for you; But you can plant a standard where a standard never flew”-Jonathan Crane
Earl James is one of the underrepresented. Once completely unemployed and past his maximum allowable benefit period he is now underemployed, working part time as a contract employee.
A veteran, 66 years old and still scrapping, still fighting; Mr. James first became unemployed in the fall of 2006 and then again in the spring of 2008 through 2009 and 2010.
“My 99 weeks of unemployment compensation ended in mid 2010, and since my part time work is contract work, the employer doesn’t pay into the unemployment fund, so I won’t qualify for that again if I lose this job for any reason.”
It shouldn’t be this way for Earl James and the countless others like him. A well educated man, a man who has carved out a career, carved out a life.
We need a person like Earl James to succeed, need his hard work to be worthwhile for the sake of everyone who has played by the rules, and everyone who we expect to in the future.
And yet as this man pushes on with unfair burdens pushing down on his back there is a sense of optimism, ”My personal situation is not totally dire” he explains adding that he is newly engaged and receiving some help from the VA and the SSA.
Still he worries about others struggling to navigate the suddenly hostile landscape of this country, specifically veterans who have given, in Mr. James’ words “part of their lives in defense of this nation and its way of life”.
“When I was unemployed in 2009 and receiving VA health care and unemployment compensation, I was not on Medicare. When I received the VA letter recently telling me I had to show medical deductions for 2009 that would bring my income for 2009 under $29,000 or I would have to reimburse the VA for some services rendered in 2009, it was the same day that the news about GE not paying any taxes on several billion dollars of profit came out. I became incensed not so much for myself – I am getting by – but for other vets who are not old enough to access Medicare or social security and are unemployed, or underemployed, or for any American in that situation, vet or not, for that matter.”
At a time when all we hear about is austerity some forget those most in need of our investment, assistance, and repayment; Americas children, languishing unemployed, and veterans who come back from Iraq and Afghanistan to 11.5% unemployment among their ranks.
There are those that fight back peacefully though, those who strive to point out hypocrisy and inequity. Among them the 99ers and US Uncut, two groups working together and separately, two of the many factions unified against misguided priorities and institutionalized misfeasance.
Mr. James, who has worked with both groups explains, “US Uncut’s mission is critical to bringing America’s unemployed back into service to our economy” continuing “Without extended unemployment compensation, Americans are left out in the cold, becoming more and more unemployable as each year goes by, and ultimately becoming permanently marginalized, all the while fat corporations like GE pay no taxes”.
This country has been unquestionably broken for a time with people like Earl James pushed to the bend of their knees and the bow of their heads. Every day they fight on a battlefield not of their choosing in the hope that they can bring into the light a standard of fairness. Question is, Democrat, Republican, or none of the above–what are you fighting for?
Tags: 99er, 99ers, economic, economy, employment, job loss, jobs, long term unemployed, unemployment, unemployment benefits, US Uncut, veterans
The April 2011 BLS employment report showed a gain of 244,000 jobs, which was trumpeted by the Obama administration and the mainstream media as a continuation of a rapidly improving jobs market. While job growth is important, it’s also important to realize the jobs hole that needs to be filled. Over the past four months more than 800,000 jobs have been created, but in January 2009 alone, more than 800,000 jobs were lost. Since February 2010,1.8 million jobs have been created, but 8.8 million jobs were lost prior to that period. That’s a job shortage of 7 million and that doesn’t include the 125,000 jobs each month that needed to be created to simply absorb new entrants into the workforce.
Additionally, the unemployment rate increased to 9%, since more people began looking for work. Returning job seekers is often considered an improved sign of job availability, but if they aren’t hired, they will go back into hiding and the unemployment rate will decline. Because of returning job seekers, the number of officially unemployed increased 205,000 to 13.75 million, which is still historically high when compared to other jobs challenged times.
One of the few honest assessments of the current jobs market was offered by Heidi Shierholz of the Economic Policy Institute:
At this point, coming out of a recession this deep, we should be getting unambiguously huge growth, of 300,000 to 400,000 [new jobs] a month,” said Heidi Shierholz, a labor economist at the Economic Policy Institute. “And it’s just nowhere near that.” She concluded: “We’re still in a rocky place.”
The job market is admittedly improving for some, but it’s not improving quickly enough for millions of jobless, especially the long-term unemployed. In April, the ranks of the unemployed who have been out of work for 99 weeks or more increased by 21,000 to a record 1,920,000. That equates to 14.5% of all unemployed.
Other long-term unemployed fared a little better in April compared to March. Those out of work for 26 weeks or more decreased from 5.839 million from 6.122 million in March. But their percentage of the overall unemployment rate remained elevated at a near record level of 43.2%. The percentage of those out of work for more and 52 weeks increased from 31.5% to 32.8% of all unemployed.
The Congress, the Obama administration and most media outlets are silent about long-term unemployment. How do they reconcile the fact that 244,000 jobs were created, but 21,000 additional workers have been unemployed for more than 99 weeks? How do they put on a happy face when a near record 5.893 million or 43.2% of all unemployed workers have been jobless for more than 26 weeks? How do they rationalize their cheerful statements of job improvements with the facts that job creation is very weak considering the trillions of dollars pumped into the economy to support Wall Street and fund tax breaks? How do they high-five the economic recovery when the labor force participation rate — the share of people over age 16 who are either working or actively seeking work — is at a low rate of 64.2%, a rate not seen since 1985? They can’t. They generally ignore the issue; long-term unemployment is the elephant in the economic recovery room.
What is being done legislatively to address this elephant in the room? To date, nothing. The GOP controlled House has been busy attempting to cut the deficit, repealing healthcare funding, and restarting offshore oil drilling. The Republicans, with the help of some Democrats, are working to weaken Wall Street regulation legislation, end net neutrality, and are arguing the Defense of Marriage Act. They are pandering to their base, acquiescing to their corporate overlords and obliging their big-wallet campaign contributors.
Congressional leaders are more concerned with ideology than reality. They have not presented a jobs bill or employment training legislation, conducted investigations on how to solve long-term unemployment, or offered tax incentives for companies to hire the long-term unemployed. They have ignored legislation, such as Rep. Barbara Lee’s H.R. 589, that would help millions of long-term unemployed, the 99ers, who have exhausted all unemployment benefits. While most of the blame can be placed at the door of the GOP controlled House, the Democratic controlled Senate and Obama have been suspiciously silent about the long-term unemployment problem.
Long-term unemployment is not only a national tragedy, but it is a personal tragedy as well. Rochelle Sevier was laid off in October 2008 while working as a recruitment coordinator for a biotech firm. Since that time, “I started my job search immediately. In addition to my job search, I attended various workshops at my local career center. As part of my search I attended job fairs, partnered with temp agencies, posted my resume online, and also submitted my resume to various positions.” During the past couple of years Rochelle took part-time temporary positions that included folding sweaters and stuffing envelopes. Her unemployment benefits ended in September 2010 and she didn’t find another job until January 2011 when an administrative position became available. Unfortunately that job ended six weeks later, “I finished out my 6th week and now I am back to square one. This rejection affected my emotional and mental state. I started to feel hopeless and depressed because I now feel like I will never work again.”
The long-term unemployed are also part of the growing ranks of food stamp recipients, personal bankruptcies, foreclosures and healthcare uninsured. Ellen Turner, who was laid off from her job in December 2008 has struggled with healthcare costs since her COBRA plan ended in June 2010.
“Now I have nothing. Hoping I can stay fairly healthy till I reach 65, and I can get Medicare. I have one knee without cartilage that has to be replaced… at a cost of 10k. Can’t do it. I have severe osteoporosis; I need fusions of reclast every year. This year, the pharmaceutical co. provided the reclast, I only have to pay for the doctor visit and lab fees: $136 bucks total. I am fortunate that I can pay this, while others at my age cannot. I turned 63 on May 10th.”
Ellen is now one of the more than 50 million Americans who do not have healthcare.
Susan R. sent the following cry for help:
“Any idea on what is happening with HR 589? My unemployment ends end of the month and I cannot get a job. I have tried everywhere. I used to be a legal secretary but now they want college which I do not have, Now you have to apply for stores, etc. online and I never hear back. I think my only hope is to kill myself. There is no hope. Also they keep saying things are getting better but I don’t see where and neither does anyone I talk to. Everyone says things are bad!!”
H.R. 589 is legislation designed to help the long-term unemployed by extending Tier 1 unemployment benefits 14 weeks. Those 14 weeks could be a financial lifesaver for millions of unemployed. Although the legislation has been discussed for months, moving it forward in a Republican controlled House will be challenging. How challenging? House Republicans are hoping to introduce legislation that could cutextended unemployment benefits in favor of lower business taxes and allow states to spend that money on other programs: The Ways and Means Committee passed a bill by 20-14 today that lets states shift some of the $31 billion they are set to get for extended unemployment aid to prevent the tax increases, pay back federal loans or fund job-training programs.
While those are all commendable options, they are long-term rewards that won’t help those that need immediate financial assistance. Oil companies have reported record profits, but the GOP favors giving them billions in taxpayer subsidies while at the same time forcing the long-term unemployed to suffer without any financial assistance.
The latest H.R.589 update comes from Crew of 42′s Lauren Victoria Burke; the news is both positive and disappointing:
The good news for 99ers: The president mentioned he wants to possibly attach the 99ers money to some other big piece of legislation somehow… which piece, how and when is unclear…The bad news for 99ers: The president does not seem deeply motivated to to actively support unemployment benefits in general terms.
Congress needs to address the elephants in the room, since millions of Americans are being sidelined by a relatively weak job market. That needs to change quickly and dramatically or more hard-working individuals such as Rochelle, Ellen and Susan will continue to bare the financial hardship and personal pain of long-term unemployment. Open your eyes now, Congress. The elephants in the economic recovery room won’t simply go away if your eyes remain closed.
Tom Toles - GoComics 5-12-11
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Tags: 99er, 99ers, congress, economic, economy, employment, extended benefits, factory closing, H.R. 589, job loss, jobs, legislation, long term unemployed, Obama, unemployment, unemployment benefits
