No recovery for everyone else
from David Ruccio
This one gets filed under “what &%*@#! recovery?” or, if you prefer, “why we’re still in the Second Great Depression.”
It shows that, while the official unemployment in the United States has dropped from a high of 10 percent in October 2009 to 7.4 percent in today’s release by the Bureau of Labor Statistics, the percentage of working-age adults with jobs has barely moved.
As Ezra Klein explains,
At the beginning of 2007, the employment rate was 63.3 percent, and the unemployment rate was 4.7 percent. By the end of 2009—so, after the worst of the recession—it had fallen to 58.3 percent, and unemployment was up to 9.9 percent. Today, it’s 58.7 percent, even though unemployment has fallen to 7.6 [today: 7.4] percent. That means a lot of the people who’ve left the rolls of the unemployed haven’t gotten a new job. They’ve just left the labor force altogether.
And no wonder: few jobs are being created in the US, and the new jobs available tend to be in low-wage sectors such as retail sales and food services and drinking places, not manufacturing or health services or other major industries (such as mining and logging, construction, transportation and warehousing, and government).
All of which adds up to the fact that, while the stock market and corporate profits have certainly recovered, there is no recovery for everyone else. That means the Reserve Army of the Barely Employed, the Underemployed, and the Unemployed continues to grow.