Thursday, December 16, 2010

The Jobs issue: an overview.

[UPDATE: Of course, a new chart was released just a few hours after I originally posted this - scroll down the bottom to see the latest unemployment chart from Business Insider.]

It was amusing in an ironic, sickening sort of way, to see the CEOs interviewed on the news yesterday after meeting with Obama. To paraphrase, it was said that they "Can't" hire more people and invest some of those trillions of dollars in profit they have laying around until "demand" picks up. In other words, it's your fault you're un- or under-employed because you didn't spend enough. Never mind that you were already spending more than you actually made. Now you have to commit to spending more than you make - i.e. be in debt slavery forever - before TPTB will even think about creating more jobs. And actually, they don't intend to create more full-time living wage jobs with benefits. No, that costs money they want for themselves.

Zero Hedge Online
Charting America's Transformation To A Part-Time Worker Society, Following 6 Straight Months Of Full Time Job Declines
Submitted by Tyler Durden on 12/13/2010 16:59 -0500

...since the depression started in December 2007, America has lost 10.5 million full time jobs, offset by a 2.8 million increase in part time jobs. ...And it is not rocket science, that converting a population to part-time workers has a disastrous impact on wealth. As Stockman presented previously, discussing part-time employment "with an average wage of $20,000 a year, that is not a breadwinning job, you can't support a family on that, you can't save on that. Those jobs will not generate income that will become self-feeding into spending." Yet more and more people are forced to work part-time...



There is no evidence whatsoever that decent living-wage full-time jobs are returning to this country, and unemployment hovers at high levels because of a lack of these types of jobs.

Business Insider
Chart of the Day
Jobless Stagnation



The media continues to pretend that "seasonal" employees (such as the census workers and holiday temps) represent "improvements" and show a "recovery" is starting, no such recovery exists. There are now, overall 5 un- or under-employed people for every job opening, and those job openings are not full-time living wage jobs with benefits. They are useless mcwallywort jobs that cannot generate enough income to support a family or enough tax revenues to run state and local governments, schools, and leave enough for charitable contributions to support the poor (since government is no longer interested in doing so - after all, the war is far more important, you know).

It's also clear that male breadwinners are the big losers in the "new" economic paradigm, as companies take advantage of the fact that women have to take medical leaves for pregnancy and sick care for kids and elderly parents (and thus have lower hours worked, lower seniority earned, and lower overall lifetime wages). As men have been laid off, fired, or had their hours or pay (or both) involuntarily reduced, the number of women relative to men who are still employed has risen.

Business Insider
Chart of the Day
The Mancession continues
Thursday, October 21, 2010

...not only is the unemployment rate higher for men than women in the aftermath of the recession, but men have lost 219 jobs for every 100 lost by women since late 2007.



This trends accurately with the chart we had posted here previously showing that the US economy is quickly ratcheting back to the days of only one full-time living wage job per household. In other words, every two-income couple who both have living wage full-time jobs with benefits means a family somewhere else with none whatsoever. Recall:



Phoenix Research Institute
Gains Pains and Capital
Goodbye Benefits...Hello "Interesting" Times
December 2, 2010

Don’t they get it?

It’s truly bizarre to me that the powers that be cannot figure out WHY the average American is growing increasingly disenfranchised with how things are going.

Let’s do a quick review of the facts:

1) Food stamp usage at record highs

2) Real unemployment around 17%

3) Food and energy inflation on the rise

4) Incomes and housing prices falling

5) Wall Street bonuses at record highs

6) The Fed continuing to pumping hundreds of billions of dollars into the banks while proclaiming a “recovery”

Seriously, a second grader could connect the dots here and see how this will work out (hint: BADLY)...After all, your typical American DOESN’T buy food or pay their mortgage with the profits from their day-trading; they pay with the money they earn from their JOB.


And if they can't pay their expenses from their ordinary wages, and can't or won't incur any more debt, that means "demand" as Obama's fat cat CEO friends require simply cannot exist.

While it might be a bit too early for a trendline on this next chart, I am seeing what looks like the beginning of a bumpy plateau at the bottom of the trough:

Business Insider
Chart of the Day
The Scariest Jobs Chart Ever is now really scary again
December 3rd, 2010



This situation cannot change until real manufacturing jobs return to this country (i.e. until tariffs and trade protections are restored to protect American workers from having to compete with people making $1 a day in third world backwaters with no wage laws, no labour laws to guarantee they aren't made to work 18/7, no safety or environmental laws, etc.). And TPTB don't want that. By their own admission, right there in the interviews yesterday, they admit this cushy tariff-avoidance via "free trade" arrangement has made them record profits and trillions of dollars in cash reserves. The fact that it has decimated the wage base of their supposed market apparently doesn't concern them. It should make you suspicious that it doesn't concern them. Clearly, they anticipate emerging markets in India, China, and other developing countries to take up the slack. That means they have no real interest whatsoever in making sure Americans have decent jobs.

It is nothing less than deliberate sabotage of the American Economy, an act of economic terrorism against the American People. And they're enjoying every bonus check they get from it this holiday season.

UPDATE: Business Insider
Chart of the Day
The Huge Structural Employment Hole is Going Nowhere
Dec 16th, 2010

...The reality is that, while claims are improving, the U.S. has a structural unemployment problem that isn't being addressed. There just aren't any jobs of workers who've been hit the hardest by the housing collapse, and with the way the housing market is going, there likely won't be for some time.

And that's why we're not seeing a movement in the unemployment rate...What does this mean? Simply that the structural nature of unemployment now is significantly different than during historical comparables and that moribund job creation can keep unemployment levels sticky even as claims begin to recede due to persistent long -term joblessness. As such we continue to hold our bias despite improving claims.




Again, there simply aren't any living wage full-time jobs being created in any industry that looks poised to absorb the 40+ million un- or under-employed. High unemployment is now fast becoming a permanent fixture of the US Economy, because of corporate greed and treasonous actions against the viability and sustainability of the US economy by transnational corporations. It's a war, class, and we're losing.

1 comment:

SJ said...

Wow Ahavah long time!

>> There is no evidence whatsoever that decent living-wage full-time jobs are returning to this country, and unemployment hovers at high levels because of a lack of these types of jobs.

In other words, Obama's stimulus failed and wasted a shitload of money.


>> This situation cannot change until real manufacturing jobs return to this country (i.e. until tariffs and trade protections are restored to protect American workers from having to compete with people making $1 a day in third world backwaters with no wage laws, no labour laws to guarantee they aren't made to work 18/7, no safety or environmental laws, etc.).

I actually agree with you here. Meaningful recovery entails reindustrialization. However there's barriers like the USA's own minimum wage laws, and real estate zoning laws.

Gotta be careful with the tarrifs though because other countries can put tarrifs on the USA.