Unemployment
is up. Joblessness has increased for African Americans.
Black women are being hit especially hard. The question
now is whether the people running the country really care?
And if they do, why are they avoiding the subject?
According
to the figures released last week by the Department of Labor,
the economy added 244,000 jobs in March. Analysts used terms
like “surprisingly strong,” “better than expected” and “somewhat
positive” to describe the statistic. On
the other hand, economist Robert Reich described the number
as “chicken feed,” noting that, “We’d need 300,000 a month,
every month for the next five years, simply to get unemployment
back under 6 percent.” Economic Policy Institute economist,
Heidi Shierholz, concurs: “At April’s job growth rate, it
would take until the fall of 2016 to get back to the pre-recession
unemployment rate.”
Nothing
now in the cards suggests that is about to happen.
The
Labor Department also reported that the country’s unemployment
rate rose to 9.0 percent from 8.8 percent, after falling
for four consecutive months. The number of unemployed persons
stood at 13.7 million in April. The percent of working-age
Americans actually working is stuck at 64.2 percent
Here’s
the real skinny on the street.
States
and local governments are still shedding jobs, reported
the New York Times May 6. “High school graduates
under age 25 have had a jobless rate of nearly 22 percent
in the past year. For young college graduates, the rate
has been 9.6 percent, about the same as high school graduates
over age 25. For black workers, unemployment was 16.1 percent
in April, far higher than that of white workers. College-educated
blacks are also more likely to be unemployed than their
white peers. Among the jobless, 43.4 percent have been out
of work for more than six months.”
The
jobless rate for African-American women rose to 13.4 percent
last month from 12.5 in April. Unemployment for African-American
men rose to 17.0 percent in April from 16.8 percent in March.
Unemployment among Hispanic women rose increased from 11
percent in March, to 11.4 percent in April. Joblessness
among Hispanic men declined from 11.1 in March, to 10.3
percent.
“Despite
modest gains in job growth, today’s report is a reminder
that millions of American women and their families are still
searching for work,” said National Women’s Law Center (NWLC)
Co-President Nancy Duff Campbell told Minority News.
Nearly
half a million people have lost their jobs since last summer.
It is estimated that if those who have ceased looking for
regular work and recent school leavers unable to find their
first job are counted, the real jobless rate would be 15.7
percent rather than 9.8 percent, says Shierholz.
That
private sector accounted for 268,000 of the new jobs was
described as “sharply better” than the 200,000 predicted
by some analysts. Big surprise. According to Bloomberg
News, McDonald’s hired 62,000 new workers in April after
receiving over one million applications.
“While
the April report appears somewhat positive, it does raise
questions about the strength of the labor market going forward,”
says economist Dean Baker. “Employment growth for the month
benefited from one-time factors that will not be repeated.
With a decline in temporary employment and little change
in the average workweek, there seems to be little pent-up
demand for labor. A 242,000 job increase in short-term unemployment,
coupled with a big jump in weekly unemployment claims, provides
additional cause for concern.” The day before the Labor
Department’s April report, it was announced that new claims
for state jobless benefits increased 43,000 to 474,000,
the steepest rise in eight months.
Meanwhile,
AFL-CIO President Richard Trumka observes, “While working
families face increased economic pressure, U.S.
corporations are raking in record profits. Figures released
yesterday show that in 2010, the 500 largest U.S.
corporations saw their profits rise by 81 percent - the
third largest gain in the history of the Fortune 500. This
could not be a clearer reminder that for a handful of Americans,
times have never been better, while for most of our country,
joblessness and economic insecurity are becoming the new
normal.”
Trumka
says Congress should be taking every necessary step to create
good jobs now to address economic inequality and insecurity,
including investing in infrastructure and job creation,
insisting that corporations and the super-wealthy pay their
fair share of taxes and improving rather than cutting the
social safety net of Medicare, Social Security and Medicaid.
“Instead
we see state and national politicians doing everything they
can to destroy jobs, heighten economic insecurity, and transfer
more of our country’s wealth to the richest Americans. The
House Republican budget proposal would cost about 900,000
jobs in 2012, 1.3 million jobs by 2013, and 1.7 million
or more jobs by 2014. It would constitute the single largest
redistribution of income from the bottom to the top in U.S.
history.”
But
as others have noted, neither major party can escape responsibility
for a lack of alarm and action.
Economist
Robert Reich writes, “And the percent of working-age Americans
actually working – 64.2 percent – hasn’t improved. It’s
almost as low as it was in the depths of the recession.
13.7 million people remain out of work.”
“Hello
Washington?”
“Employment
has risen from its low point, but it has grown no faster
than the adult population,” writes economist Paul Krugman.
“And the plight of the unemployed continues to worsen: more
than six million Americans have been out of work for six
months or longer, and more than four million have been jobless
for more than a year.
“It
would be nice if someone in Washington
actually cared.”
“Why
isn’t Washington
paying attention to what most Americans need in the here-and-now
economy?” asks Reich. “Because the White House and congressional
Democrats don’t dare admit how bad the economy continues
to be for so many people. They’re holding their breath,
hoping the recovery catches fire next year before Election
Day.
“Republicans
don’t dare admit how bad the economy is because they don’t
want to increase public spending or strengthen safety nets.
And their patrons on Wall Street don’t want to modify mortgages.
Republicans would rather Americans believe their big lie
that taming the deficit will create jobs and restore the
economy.”
“So
we’re paying a heavy price for Washington’s
obsession with phantom menaces,” says Krugman. “By looking
for trouble in all the wrong places, our political class
is preventing us from dealing with the real crisis: the
millions of American men and women who can’t find work.”
President
Obama’s approval rate for handling the economy is at its
lowest point and that of Congress is even lower, which should
indicate a disconnect between the complacency in Washington
and what the people on Main Streets are experiencing or
seeing around them. “The fixation on the federal deficit
has silenced talk of more fiscal stimulus,” the Times
said editorially. “But more aid to states could help
stanch job loss. Programs that create public-works jobs
could be tailored to groups with high unemployment, and
job re-training could focus on the long-term unemployed.”
“The
sound of one hand clapping is what you hear when policy
makers wave those kinds of ideas away.”
“The
economy still needs help and, specifically, a sustained
focus on jobs and income. Instead, policy makers are gearing
up for deep spending cuts, ignoring the damage they are
likely to cause,” the Times said editorially on May
Day. “Last quarter, cutbacks by governments at all levels
took a chunk out of overall growth. If cuts of similar or
greater magnitude become the norm, the slow economic pace
of the first quarter also could very well become the norm.
It’s nice to believe slowing growth is transitory. But
as long as spending, jobs and incomes are at risk and policy
priorities are skewed, it’s hard to believe in a turnaround.”
I
am not suggesting here that the federal deficit is not a
problem but as many able economists have pointed out, big
steps to expand the economy, put people back to work, increase
both exports and domestic spending - along with some progressive
tax increases - would go a long way toward reining it in.
It’s
not like nobody in official Washington
cares about the jobs situation or is sitting mute in the
face of the crisis. For months now members of the Congressional
Black Caucus (CBC), organized labor and state and local
advocacy groups around the country have raised the alarm
and tried to get a message to the White House. But these
voices and these efforts have gone relatively unreported
by th e major mass media – the Times included – caught
up as they are in deficit mania.
“It’s
critical that policy makers focus on strategies to increase
job opportunities instead of promoting deep budget cuts
that could unravel the slow and fragile recovery,” said
Campbell, the Women’s Law Caucus’ Co-President.
“For
the 16th straight month, we have seen growth in private
sector jobs - last month being the strongest for job growth
since February 2006,” reads a statement by CBC chair Emanuel
Cleaver, II. Nevertheless, the overall unemployment rate
increased by .2 percent and unemployment in the African
American community has increased by .6 percent to a painful
16.1 percent. The fact still remains that millions are still
out of work, which is particularly challenging, given the
fact that increasingly higher gas prices are putting a strain
on every American family.
“After four months of controlling the House, the Republican
Leadership has not considered or introduced one single jobs
bill. Instead they continue to cut funding to critical programs
that directly and negatively impact our country’s most vulnerable
communities, costing hundreds of thousands of jobs. I am
fearful that reckless spending cuts will severely undermine
and prevent recovery for every American community. The CBC
remains committed to responsibly reducing the deficit, while
safeguarding the progress that we have made in the job market
by investing in our future. Investing in our communities
goes hand in hand with full economic recovery. No investment,
no recovery.”
One
could reasonably ask members of Congress and the Administration
why there is no “National Commission on Economic Growth
and Employment.” Or, why there is no “gang” of six politicians
working their tails off to come up with a solution to the
nation’s jobs crisis. Instead we have a concerted campaign,
abetted by a pliant media, to maneuver the country into
accepting schemes that will actually slow down growth, reducing
the number of jobs available in the public sector and increase
the precariousness of workers in their retirement years.
And,
some might ask why big companies and banks can be rescued
while the powers-that-be act as if they have abandoned the
jobless as the politicians embark on a frenzy of “deficit
reduction.”
BlackCommentator.com
Editorial Board member Carl Bloice is a writer in San Francisco, a member of the National Coordinating Committee of
the Committees of Correspondence for Democracy and Socialism
and formerly worked for a healthcare union. Click here
to contact Mr. Bloice.
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