Job losses signal change for the worse
By
Betsey Piette
Published Sep 11, 2008 9:31 PM
All the campaign slogans for “change” can’t hide the reality
of a U.S. economy rapidly spiraling toward a recession that neither McCain nor
Obama can stop. Workers were still sweeping up the confetti at St. Paul’s
Xcel Energy Center after the Republican convention when the latest U.S.
Department of Labor unemployment report sent the stock market plummeting.
According to the report released Sept. 5, the official U.S. unemployment rate
jumped to 6.1 percent in August with employers shedding jobs for the eighth
consecutive month, while revised numbers for earlier months showed even greater
losses.
Over 84,000 workers lost their jobs in August. These job losses occurred across
broad sectors of the U.S. economy, from manufacturing to retail and
construction. Automakers and auto parts suppliers alone cut 38,000 jobs.
Economists predict things will likely worsen. Ken Goldstein, an economist with
the Conference Board, which reports on consumer confidence, said,
“We’ve seen declines every month, all year long ... but the
declines have started to intensify, and will continue through the end of the
year, very likely into the first months of 2009.”
Economic Policy Institute economists Jared Bernstein and Heidi Shierholz say
the jobless figures clearly show “the engine of job growth is not merely
stalled, it is solidly operating in reverse, and the job market’s
deterioration in August suggests these problems are deepening.” Bank of
America economist Peter Kretzmer noted, “The rapid rise in unemployment
points to a U.S. recession.” (McClatchy)
The Labor Department reports that over 2.2 million people have been added to
jobless rolls over the past 12 months, with a total of 9.4 million U.S. workers
unemployed as of Aug. 31, 2008. The number of long-term unemployed—those
workers jobless for 27 weeks or more—rose by 589,000 over the last 12
months.
But government figures don’t tell the whole story. Labor Department
statistics count involuntary part-time jobs as full-time work. The new report
excludes farmworkers and undocumented-immigrant labor and at least 1.6 million
“discouraged workers” who have given up looking for jobs that no
longer exist. It excludes 2.3 million prisoners, many who toil in slave labor
conditions for pennies a day.
The 6.1 percent unemployment figure represents a national average, but for
Latin@ and African-American workers, jobless rates are officially in double
digits. In August, unemployment for Black workers reached 10.6 percent, with
over a half million more workers unable to find work than a year ago. This
increase is almost exclusively due to job losses among Black women.
The reported unemployment rate for Latin@ workers reached 8 percent in August.
A large number of Latin@ workers were employed in the construction industry,
hard hit by the collapse of the housing market.
The number of all single mothers who are unemployed but receive no welfare
assistance has grown to over 33 percent. Many women with children have stopped
looking for work, unable to afford child care or transportation costs due to
low-paying jobs.
Youth unemployment has risen by an alarming 555,000 individuals over the past
three months, according to the Labor Department. Even official
statistics—which deliberately understate U.S. job
losses—can’t hide the miserable fact that youth in the U.S. are
losing their jobs at an unprecedented rate. Washington, D.C., New York City,
Detroit and Chicago all have youth jobless rates over 80 percent.
While jobless rates for youth have consistently been the highest, the latest
job losses have mainly impacted adults 25 years and older. The unemployment
rate for college graduates rose to 2.7 percent. For adults with less than a
high school diploma, the jobless rate jumped to 9.6 percent, the highest
increase since May 1996.
A change is coming indeed, though not because of the empty promises of
campaigning capitalist politicians. Record high unemployment, coupled with the
housing and foreclosure crisis along with rising prices of food, fuel and other
consumer goods, is bound to ignite a firestorm of rebellion among the working
class.
Articles copyright 1995-2012 Workers World.
Verbatim copying and distribution of this entire article is permitted in any medium without royalty provided this notice is preserved.
Workers World, 55 W. 17 St., NY, NY 10011
Email:
[email protected]
Subscribe
[email protected]
Support independent news
DONATE