Today's ridiculous employment report for December by the federal government needs a full explanation so that everyone can understand just how truly terrible things really are. Rather than provide that explanation myself, however, I went to the Economic Policy Institute, a progressive think tank in Washington to get the answers. EPI released its Issue Brief #374 yesterday to discuss the unemployment situation in the USA. Here are two of its key findings:
The total "jobs gap" -- the number of jobs needed to return the US economy to pre-recession health -- is 7.9 million jobs. (3.6 million for women and 4.3 million for men.)
Most of the improvement in the unemployment rate since its peak of 10.0 percent in the fall of 2009 has not been driven by increased employment, but rather by potential workers dropping out of, or never entering, the labor force because job opportunities are so weak. In other words, these are people who would be either working or looking for work if job opportunities were significantly stronger. Because jobless workers are only counted as unemployed if they are actively seeking work, these "missing workers" are not reflected in the unemployment rate. If all these missing workers were actively seeking work, the unemployment rate would be 10.3 percent instead of 7.0 percent.
EPI also points out that the pace of job creation has not sped up at all over the last four years. Indeed, after today's paltry number of only 74,000 jobs created, that rate has actually slowed down.
It is disgusting that the failure of the economy to create jobs has been swept under the carpet by the mainstream media. Americans deserve the chance to find a good paying job, or at least a job sufficient to let them be self supporting. In five years under Obama and his policies, those jobs have just not appeared. There have been other instances in the past when new jobs have dried up as the economy went into recession. In the past, however, job creation recommenced once the economy started growing again. Obama and his policies, however, have managed to prevent the creation of new jobs this time. Millions of people (actually 7.9 million according to the EPI) are out of work because Obama's policies have failed.
These are facts which cannot be repeated too often. They are more important that how much was spent on the failed Obamacare website. They are more important than whether or not Chris Christie knew about the lane closures on some roads in New Jersey. They are more important that how much surveillance the NSA conducts on the average American. We are talking about the lives of nearly eight million Americans and their families. These are people who ought to have a chance to find work, but who have been forced to just give up. Right now, the big issue is not whether or not these folks will get a few more weeks of unemployment compensation. No, the big issue is how can the USA change course so that these people will be able to find work. Sadly, neither Obama nor the Congress is talking about this.
The total "jobs gap" -- the number of jobs needed to return the US economy to pre-recession health -- is 7.9 million jobs. (3.6 million for women and 4.3 million for men.)
Most of the improvement in the unemployment rate since its peak of 10.0 percent in the fall of 2009 has not been driven by increased employment, but rather by potential workers dropping out of, or never entering, the labor force because job opportunities are so weak. In other words, these are people who would be either working or looking for work if job opportunities were significantly stronger. Because jobless workers are only counted as unemployed if they are actively seeking work, these "missing workers" are not reflected in the unemployment rate. If all these missing workers were actively seeking work, the unemployment rate would be 10.3 percent instead of 7.0 percent.
EPI also points out that the pace of job creation has not sped up at all over the last four years. Indeed, after today's paltry number of only 74,000 jobs created, that rate has actually slowed down.
It is disgusting that the failure of the economy to create jobs has been swept under the carpet by the mainstream media. Americans deserve the chance to find a good paying job, or at least a job sufficient to let them be self supporting. In five years under Obama and his policies, those jobs have just not appeared. There have been other instances in the past when new jobs have dried up as the economy went into recession. In the past, however, job creation recommenced once the economy started growing again. Obama and his policies, however, have managed to prevent the creation of new jobs this time. Millions of people (actually 7.9 million according to the EPI) are out of work because Obama's policies have failed.
These are facts which cannot be repeated too often. They are more important that how much was spent on the failed Obamacare website. They are more important than whether or not Chris Christie knew about the lane closures on some roads in New Jersey. They are more important that how much surveillance the NSA conducts on the average American. We are talking about the lives of nearly eight million Americans and their families. These are people who ought to have a chance to find work, but who have been forced to just give up. Right now, the big issue is not whether or not these folks will get a few more weeks of unemployment compensation. No, the big issue is how can the USA change course so that these people will be able to find work. Sadly, neither Obama nor the Congress is talking about this.
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