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November 06, 2009, 02:00 PM ET
How Bad is the Jobs Report?
Productivity is up over 9.8 percent in the third quarter of 2008; which is mostly good news. When a recession starts, stunned companies keep paying their bills while they sell less output. Not until they idle factories and lay off workers does labor productivity improve: Workers produce more per hour than ever before.
That raises profits, raises wages, and raises spirits.
Productivity gains kept earnings from falling during the Great Recession -- earnings were up over 2 percent this year. The fact that workers are saving costs by doing the work of two or three people -- after their colleagues have been ditched -- is the good news.
The bad news is that unemployment rose to 10.2 percent after the economy lost 190,000 more jobs in October. The consensus prediction was for a "mild" job loss of 175,000, mild given the 600,000 lost in the bleak months last year.
The biggest losers here are adult white men. Their rates are above 10.7 percent and in October saw their joblessness grow even more.
Ross Eisenbrey of the Economic Policy Institute recommends five ways to create jobs, including more unemployment benefits for the long-term unemployed -- 35 percent of the unemployed have been out of work for over half a year, a near record high.
I like the proposal for public-service jobs -- the old "make work" approach.
Put the able bodied to work. In the Great Depression we built the Hoover Dam and brought 20 percent of the nation to the 20th century with electricity. What is this recession's Hoover Dam?
Comments
1. marka - November 09, 2009 at 08:22 pm
I too support public 'real' work - CCC, etc. produced BPA, TVA, and rural electric coops, Timberline Lodge, etc., WPA art. As long as we are spending the money, let us give those willing to work at such jobs the opportunity, and the ability to show a subsequent employer a worthwhile work experience. Re-reading FDR's state-of-the-union addresses emphasizes the desirability of these temporary public works, to prepare us for the subsequent private sector jobs. We could start with cleaning up our blighted areas - our roadways, ghettos, etc. - and building decent housing for all. Habit for Humanity is a good start -- let's expand it with the opportunity for all those who wish to work to build community.
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