Jobs & Unemployment
10% Unemployment Looming
Published November 05, 2009 @ 12:00PM PT
New unemployment #s come out tomorrow - economists predict 9.9% unemployment nationwide. Can I just round that up to 10% and call it a day?
First time jobless claims were less than expected in October, though only 20k fewer of over half a million. We are supposed to take this as good news that "job cuts are easing as the economy slowly heals." This is the lowest level since January. Still...2009 is almost over and we're still seeing half a million people per month file for unemployment for the first time? That is one horribly contracting economy.
Surviving workers are laboring more feverishly than ever - productivity is up even as our incomes are "squeezed". The stimulus is keeping a lot of jobs afloat; unemployment benefits are practically extended into perpetuity at this point. No wonder discount retailers are doing slightly better than specialty stores; it's amazing we've got anything left to leave behind at the mall!
Budget Crises, Development Woes Confront Mayors
Published November 04, 2009 @ 01:34PM PT
Looking around at the mayoral results from yesterday's elections, seems incumbents and historic new leaders face a shared set of urban challenges: budget gaps, development and housing costs, crime, and troubled educational systems. Gee, what's new?
Certainly not the leadership in Boston, where Mayor Tom Menino won an unprecedented 6th term to become the city's longest serving mayor. Menino's remarkable claim to fame in governing this city of 600k (or so) is that almost half of all Bostonians have personally met him - including yours truly (several times now). Voters re-elected him with fondness for the Christmas trees he provides for neighborhood squares, his handshakes in line at Dunkin Donuts, and his seemingly 24/7 appearance on local public television. His campaign promises include closing budget gaps, lowering the crime rate, and improving the Boston Public Schools - a big issue this time around.
In Detroit, arguably the most troubled city in America, Mayor Dave Bing must close a $300M budget gap and also tackle crime and a failing public school system. He promises to whittle Detroit's finances down to reflect the city's new reality as the 11th largest city in the US, through cuts and efficiencies. Beware the Mayors who promise to govern cities like they run their businesses. Sure, they can buy themselves term after term, but eventually voters (citizens? shareholders?), especially the lower-income ones who don't usually see the corporate profits trickle down their way, will tire of these CEOs.
Stimulus Bypasses Minority Businesses
Published November 03, 2009 @ 09:00AM PT
Criticism abounds of the unequal distribution of stimulus funds: high per capita allocations to low population, low unemployment states like Wyoming versus low per capita amounts to struggling states like CA; and the limited allocations reaching women- and minority-owned businesses compared to their proportion of the population.
The Kirwan Institute for the Study of Race & Ethnicity at The Ohio State University finds that "While approximately 14 percent of businesses are minority owned, the study shows that minority owned businesses received only 9.6 percent of federal contracts." Almost 3 in 10 businesses are owned by women, yet these firms received only 3% of stimulus funds. This disturbing inequity raises questions about the goals of the stimulus and the (surprising?) lack of focus on reducing economic inequality.
Your Recession in Charts
Published November 02, 2009 @ 01:52PM PT
Last week President Obama touted 640,000 jobs were created or saved via the stimulus. No doubt the stim, as we're apparently calling it now, has had some positive impact. (Though if it's behind the endless road improvements going on in the Greater Boston area that's driving me insane, pun intended, then I might have to rethink this whole public works investment concept!)
But eminent economist Joseph Stiglitz pronounces the recovery "nowhere near" over and the myriad charts our friends at Calculated Risk and the Wall Street Journal certainly suggest as much. WSJ has an interactive map of stimulus spending by state, including jobs saved and current unemployment rates. 15% unemployment in Michigan! It's almost 30% in Detroit.
Calculated Risk has the gruesome images, including the above graph demonstrating a national unemployment rate of 9.8% (as of September 30), the highest in 26 years.
ABC's of an Effective Jobs Initiative
Published October 30, 2009 @ 05:04AM PT
Driving the Learning Curve Express around backroads of the lower 48, my observation is America's human infrastructure is on life support. The latest unemployment indicators aren't real encouraging. CNN reports...
...the slide may signal that more filers are dropping off those rolls into extended benefits....The figures do not include those who have moved to state or federal extensions, or people whose benefits have expired.
In an op-ed column in The Baltimore Sun, Julianne Malveaux validates my ideas.
To commemorate this anniversary of the Great Depression, the Obama administration ought to engage in Depression-era tactics to jump-start the economy. We have spent $700 billion bailing out banks and $787 billion in economic stimulus. But we have not focused on directly creating employment, on lifting people at the bottom.
Come on! Let's kick something in gear that works.
Most Elderly Job Seekers Since the Great Depression
Published October 29, 2009 @ 08:54PM PT
As a nation, we haven't done too well on reducing poverty overall, but one point of pride has been our success in reducing elder poverty through the creation of Social Security, Medicare, and a general prioritizing of affordable housing and social services for older Americans. Especially considering older Americans' voting power, these programs are generally considered sacrosanct, despite the best efforts of Bush & Co.
So this article from last week is particularly alarming: more Americans aged 65 and up are on the job market than at any other time since the Great Depression - and five times more elderly than just a few years ago. Indebtedness is way up, and economic insecurity is widespread. Are we reversing one of our few anti-poverty successes of the 20th century?
Food Pantry System Needs an Overhaul
Published October 26, 2009 @ 10:05AM PT
With many food pantries around the country being operated by "little old ladies in sneakers," hunger advocates are beginning to worry about who will staff these indispensable operations once an exceedingly aging volunteer base can no longer do it.
After popping up in major cities and small towns alike during the 1970s, food pantries are now being hit with the greatest increase in demand (which has risen between 30 and 70 percent over the past year) they have ever experienced. This is especially troublesome for the elderly volunteers whose bodies simply cannot work any faster or harder.
Many are hoping that as the civically-minded baby boomer generation heads toward retirement, a new group of hunger activists will begin to pick up the slack. It's certainly good news that out of the three billion hours baby boomers spent volunteering last year, nearly 25 percent of that time went to collecting or distributing food.
However, with the recession wiping out many retirement accounts, there's no guarantee that baby boomers will be able to actually leave their paying jobs for the volunteer realm anytime soon.
