Treasury Official: Recovery Act Stalled Job Loss

By Justin Duckham-Talk Radio News Service

A high-ranking Treasury Department official says that the stimulus plan is not responsible for the August rise in unemployment and may in fact have mitigated it. Friday in a briefing with reporters, Alan Krueger, Assistant Treasury Secretary for Economic Policy and Chief Economist, said that there are signs that the economy is improving, but that employers are not hiring because of a lack of confidence. In August, the number of unemployed persons increased by 466,000 to 14.9 million and the unemployment rate rose by 0.3 percent to 9.7 percent. Nonfarm payroll employment rose to 9.7 percent, or 216,000 Americans without jobs.

“Without the steps (the Obama administration has) already taken, the pain would be much worse,” Krueger said, alluding to the American Recovery and Reinvestment Act, a two-year program which will provide $787 billion to jump-start local and state economies. “The typical pattern is that we see the job market recover more slowly. From employers’ perspectives, they want to be more confident that they are going to see an increase in demand before they hire.”

According to the U.S. Bureau of Labor Statistics: “Among the major worker groups, the unemployment rates for adult men (10.1 percent), whites (8.9 percent), and Hispanics (13.0 percent) rose in August. The jobless rates for adult women (7.6 percent), teenagers (25.5 percent), and blacks (15.1 percent) were little changed over the
month. The unemployment rate for Asians was 7.5 percent.”

Since December, 2007, employment has fallen by 6.9 million. In August, construction employment declined by 65,000, in line with the trend since May. Monthly losses had averaged 117,000 over the six months ending in April. Employment in the construction industry has contracted by 1.4 million since the onset of the recession. Starting in early 2009, the larger share of monthly job losses shifted from the residential to the nonresidential and heavy construction components. In mining, employment declined by 9,000 over the month.

In August, manufacturing employment continued to trend downward, with a decline of 63,000. The pace of job loss has slowed throughout manufacturing in recent months. Motor vehicles and parts lost 15,000 jobs in August, partly offsetting a 31,000 employment increase in July.

Employment in the retail trade industry was little changed in August. Employment also was little changed in professional and business services over the month. From May through August, monthly employment declines in the sector averaged 46,000, compared with 138,000 per month from November through April. Job loss in its temporary help
services component has slowed markedly over the last 4 months.

Employment in health care continued to rise in August (28,000), with gains in ambulatory care and in nursing and residential care. Employment in hospitals was little changed in August; job growth in the industry slowed in early 2009 and employment has been flat since May. Health care has added 544,000 jobs since the start of the recession.

September employment figures will be released on Friday, October 2.

Solis Sees Health Care Reform As Possible Solution To Job Crisis

By Courtney Costello- Talk Radio News Service

Hilda Solis, Department of Labor Secretary, gave remarks today on health care reform, at the American Federation for Teachers, Health Care and Public Employees Joint Conference.

“We’re in a lot of trouble...[there are] things that weren’t taken care of years ago and its catching up to us now... We can downsize in a way that doesn’t hurt the most vulnerable and to me that means health care,” said Solis.

Solis stressed that there are over 250 million jobs in health care careers that can be filled by unemployed Americans. She also emphasized that newly displaced workers can take advantage of the 3.5 billion dollars that have been released by the Department of Labor for green collar jobs by partaking in new training programs.

“Health care isn't a one time shot. Health care reform is a tough issue for us, and for the President, and for many Americans. [There are] 46 million, and growing, that don’t have it,’ said Solis. “There are more people having to go to public assistance because they lost their job...we've got to fix it.”

Obama Wants You to Go Back to School

By Michael Ruhl, University of New Mexico – Talk Radio News Service

President Barack Obama
Photo by Michael Ruhl

Today President Barack Obama announced a new effort to stimulate tomorrow’s economy by reviving higher education through expanding Pell Grants and removing barriers to success. The public face for his new initiative is to be Dr. Jill Biden, wife of Vice-President Joe Biden and Community College Professor.

Obama’s plan, detailed at opportunity.gov, would help the unemployed go back to school to build new skill sets, with the goal of helping them gain future employment through specialized technical training.

“The idea here is to fundamentally change our approach to unemployment in this country, so that it’s no longer just a time to look for a new job, but is also a time to prepare yourself for a better job,” Obama said. “Our unemployment system should be not just a safety net, but a stepping stone to a new future.”

Among the barriers to success that the President wants to break down are state programs in which a worker might lose temporary financial support if they were to enroll in an education program. Obama said that in some places a worker may be unemployed, but may not qualify for federal assistance to get an education because of the salary they had a year ago but no longer make. The President said that he is committed to working with states to change these laws.

The President said that knowledge is the most valuable skill that one can sell. He encouraged all Americans to aim for getting at least 1 year of higher education, whether it is a community college, a four year school, vocational training or an apprenticeship.

“By 2020, America will once again have the highest proportion of college graduates in the world,” Obama said optimistically.

This announcement came on the same day as the release of April’s unemployment statistics, which saw the loss of more than half a million jobs. The unemployment rate for April was 8.9 percent, up from 8.5 percent in March and 8.1 percent in February. April's numbers have already surpassed both the White House's and the Federal Reserve's projections for all of 2009, which were 8.1 percent and 8.8 percent, respectively.

Acknowledging that unemployment is as its highest rate in 25 years, the President urged patience, reminding us that the economic problems didn’t happen overnight, and couldn’t be fixed immediately.

“We’re still in the midst of a recession that was years in the making and will be months or even years in the unmaking,” Obama said. He continued, “We should expect further job losses in the months to come.”

Obama said that the Economic Stimulus Package is yielding real results, manifest in higher consumer spending and home sales, and an increase in construction spending. He praised the Recovery Act, and said, “Because of this plan, cops are still on the beat and teachers are still in the classroom; shovels are breaking ground and cranes dot the sky; and new life has been breathed into private companies.”

Fixing the economy and reforming education are two goals Obama has set for his administration. He said that in the weeks to come he would start working towards more education initiatives.