Entrepreneurship Will Help Get Country Out Of Recession, Says AEI President

By Laura Smith - University of New Mexico/Talk Radio News Service

President of the American Enterprise Institute, Arthur Brooks, said Monday that entrepreneurship, hard work and merit will help guide the U.S. out of the recession.

"Those are the tools to get out of this recession or any other recession,” Brooks said during a discussion hosted by AEI and the the National Chamber Foundation on job creation.

According to the U.S. Department of Labor, the unemployment rate hit 10.2 percent in October, with California, Michigan, Florida and Illinois being the hardest hit.

Nick Schultz, editor-in-chief of American.com, quoted Wall Street Journal journalist Alan Blinder, saying, “It’s no wonder people have three things on their minds: jobs, jobs and jobs.”

However, Brooks says he thinks Americans care about different things.

“I think Americans care about three things that are actually more fundamental than jobs, jobs and more jobs, which is freedom, individual opportunity and a culture of entrepreneurship.”

Unemployment Reaches 10.2 Percent

By Leah Valencia, University of New Mexico- Talk Radio News Service

Unemployment increased to 10.2 percent in October, the highest rate since 1983, leaving Americans with 190,000 less jobs, Bureau of Labor and Statistics Commission Keith Hall told Congress in a Joint Economic Committee hearing Friday.

“The declines are much smaller and less widespread than they were last Fall and Winter,” Hall said. “Nevertheless, some industries are still experiencing notable employment decline.”

Hall told the committee that in October the heavy construction, manufacturing and retail industries have had a particularly significant decline in employment losing a combined total of 163,000 jobs.

However, he added that some industries have seen an increase in employment. Health care and help services are among the few that have added jobs, with a much smaller figure of 63,000 combined jobs.

Hall said since the recession began the number of unemployed has more than doubled to 15.7 million.

“The number of long-term unemployed remained high in October,” Hall said. “5.6 million workers have been jobless for 27 weeks or more.”

He said the increasing number of people who have become discouraged in looking for work and therefore remained unemployed have added to the problem. In October there was a reported 808,000 discouraged workers, a figure up from 484,000 last year.

“These are individuals are not currently looking for work because they believe no jobs are available for them,” Hall said.

Committee members on both side of the aisle agreed that in terms of job creation, the economy is not where it needs to be. Chairwoman Carolyn Maloney (D-N.Y.) said she believes the nation is on track to recovery, while Republicans argued that the Obama administration has not done enough to facilitate employment growth.

Dem. Senators Pressure The Right To Move Faster With Unemployment Benefits Bill

By Ravi Bhatia-Talk Radio News Service

Democratic senators accused their Republican colleagues of becoming “A party of ‘No’” today on Capitol Hill, expressing concern that the right is delaying a bill to extend unemployment benefits for 14 additional weeks to those whose benefits are expiring before 2010.

The bill would add 20 additional weeks of unemployment benefits to citizens in states suffering the highest unemployment rates, such as Rhode Island and Michigan.

“Every state has been hit by this recession, every state is seeing these problems,” Sen. Jack Reed (D-R.I) said. “The Republicans have thrown up opposition in terms of requesting a CBO score when we know [the bill] is fully paid for and fully offset. Now they’re delaying passage by offering amendments that have nothing to do with unemployment. Instead of action, they are just simply saying 'no'.”

Every dollar of unemployment benefits generates $1.60, according to Reed, who later added that the Republicans proposed attaching amendments that relate to ACORN funding and extending the $8,000 real estate tax credit.

Employers pay state and federal unemployment taxes. To pay for the bill, the Democrats proposed extending federal unemployment taxes one more year. Republican senators want the bill to be paid for by other means.

The national unemployment rate has reached 9.8 percent and continues to climb, according to the U.S Deptartment of Labor.

“We don’t need more foreclosures. We need to help folks,” said Sen. Al Franken (D-Minn.), whose state’s unemployment rate is at 7.6 percent. “And this is the time to do it.”

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.

July Statistics Indicate Unemployment Moderation, A “Good Sign,” Says Labor Bureau Commissioner

By Mariko Lamb, Talk Radio News Service

Keith Hall, Commissioner of the Bureau of Labor Statistics, released data to the Congressional Joint Economic Committee Friday that indicated a moderation in unemployment, a “good sign” for economic improvement, he said.

According to the Bureau’s statistics, the unemployment rate remained relatively consistent at 9.4% in July. Job losses in wholesale trade, transportation and warehousing and financial activities industries continued, while losses in the hardest hit sectors, construction and manufacturing, increased. Employment in leisure and hospitality remained steady and health care employment increased, growing in line with the 2009 trend thus far.

Additional findings in the report show that minorities and the uneducated continue to suffer the most job losses, a trend that parallels unemployment statistics prior to the recession. “The trend is pretty much the same,” Hall said, “so when the overall unemployment rate goes up, it goes up by more for the minorities.”

Despite continued job loss, Hall said that the moderation in the past three months is a “good sign.” “While I would say we’re not in recovery yet, this is the path that we have to go through to get to recovery. We expect to see moderation first before we start actually getting improvement in the labor market,” he said.