Home > The Economy > No recovery for everyone else

No recovery for everyone else

from David Ruccio

CBPP-fig3

source

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.

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Categories: The Economy
  1. paul davidson
    August 4, 2013 at 5:00 pm

    and most of the new jobs are part time jobs –with some of the already employed being reduced to part time workers — so we have sharing of the same total work house ..

    Part of the reason for this is Obama Care where employers do not have to provide health insurance for workers who are only part time. Thus in many industries such as fast food, retail, etc. just reduce your working people to part time and add additional part timers to cover total of the same number of hours.

    Measured unemployment rate declines but it is just a bad measure of equivalent of full time employment. [Something similar in Germany wit hits government sponsored apprentice jobs!]

  2. BFWR
    August 4, 2013 at 5:15 pm

    In a modern technologically advanced economy the middle class lifestyle guaranteeing citizen’s dividend is the logical supplement to the wage. The Financial system has every right to exist. It does NOT have the right to dominate and enforce a new feudalism.

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