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Posted by on Jul 3, 2008 in Economy | 8 comments

The Jobs Report

Today we learned that in June, our economy lost roughly 62,000 jobs according to the Bureau of Labor Statistics. Along with this, we learned that even more jobs were lost in May than initially thought. The unemployment rate is remaining stable at 5.5% — this has to do with the very narrow BLS definition of “unemployed” (you had a full time job, you lost it, you aren’t working at all, and you are actively looking for work). Keep in mind, May and June are a time when our new high school and college grads are looking for their first “real” job.

CNN furthermore points out that June was the 6th straight month of job losses, initial jobless claims are up, total unemployment claims are at the highest level since Katrina, and wages aren’t keeping pace with inflation — that’s inflation as [under]measured by the government.

Robert Reich did a very nice wrap-up of the problem, pointing out “Total job losses since the first of the year are now 438,000. That’s a loss of 73,000 a month. The economy needs to CREATE 125,000 jobs a month just to keep up with population growth.” That’s about all that needs to be said.

Cross-posted at ShortWoman.

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Copyright 2008 The Moderate Voice
  • Neocon

    I have a brother who drives for a major Over the Road freight company in the US. He is a teamster and has been with them a long time. His job is secure but others are not.

    He was telling me just the other day that they are laying off drivers and that the amount of freight they are hauling is drying up. Used to they would haul a trailer that was 85 percent full. Now its 105 percent full.

    Deisel fuel is not only killing them but to pay for the fuel costs they have to pass their costs on to the shippers who then have to pass their costs on to their customers etc. etc.

    He has driven so long that he told me that the recession in 1981-82, 1992-93 and 2001-2002 and now this one came on and looked identical from his perspective.

    There is a recession. Unless we do something about fuel it might turn into one of the worst in a long long time. I’m betting the democrats who control congress will do nothing, resist all meaningful attempts for one overriding reason.

    They don’t give a hoot about us. They want power.

    A bad economy. Lost jobs. Poor people puts them in power.

  • pacatrue

    200,000 jobs a month short fall to keep up with population. Ouch.

  • Neocon

    And this has been coming on for years and years. Iraq is not the reason that gasoline is 4 bucks and climbing.

    World Demand is the reason and the democrats continue to block every effort to drill for more oil and to build more refineries. I understand this sounds like a GOP talking point but we need to get this under control.

    Unless we do in about 2 years the Democrats will have a 60-40 deficit in the senate and the house will be 300 republicans. This is an outrage that they have fought this for so long that the entire world is now suffering when we could be pulling another 5 million bbls of oil a day from the ground freeing up world supply and reducing the price of gasoline by 2 bucks a gallon.

  • pacatrue

    Neocon, I would be open to a compromise bill which both expands oil production AND mandates/encourages conservation and alternative energy on a scale not seen yet. I don’t like the former much, but if I can only get the latter by making a deal, so be it. However, if we only drill more, we only pass this problem to our children.

  • superdestroyer

    It is hard to belive that the Democratic Party really cares about jobs, wages, or employment while it continues to support open borders and unlimited immigration.

    Maybe many AMericans are dropping out of the job market because the job market is filled with illegal aliens who drive down wages and make workplaces inhospitible for non-Hispanic Americans.

  • Neocon

    pacatrue

    Oil is NOT a long term solution. I wished it were gone today as do almost everyone. But unless we do something and do it right now then we are going to be in very serious jeopardy very soon.

    Not only America but this world cannot sustain these prices on Gasoline. Yet I believe that the oil and gasoline industry have purposely gouged us for profits and as a result I am beginning to see the need for a nationalized oil and gasoline industry because our national defense is at stake and the only damn thing the oil and gasoline industry cares about is profits.

    Dateline July, 2007.

    America’s high gas prices are being caused, in part, by what has been called an “invisible hurricane” – have been plagued by a record number of fires, power failures, leaks, spills and breakdowns this year, causing dozens of them to shut down temporarily or trim production.

    These mechanical breakdowns have created a bottleneck in domestic energy supplies, helping to push up gasoline prices 50 cents this year to well above $3 a gallon. A third of the country’s 150 refineries have reported disruptions to their operations since the beginning of the year, a record according to analysts.

  • DLS

    Reich? Phffft. But at least he’s not as hackish as Krugman [retch] (Obama’s new Treasury Secretary and chief of the economy? [retch])

    “There is a recession. Unless we do something about fuel it might turn into one of the worst in a long long time. I’m betting the democrats who control congress will do nothing, resist all meaningful attempts for one overriding reason. … It is hard to belive that the Democratic Party really cares about jobs, wages, or employment while it continues to support open borders and unlimited immigration.”

    Well, they’ll exploit misery, as they have before, and offer salves of the kind that appeal to children, but not to adults. More sinister would be intervention of a social-engineering kind such as trying to force people to buy some (PC stamp of approval) kinds of vehicles rather than others through “fee-bate” schemes or new sumptuary (“sin”) taxes on larger vehicles (which buyers are already avoiding of their own free will currently), heavier vehicles, engine displacement, max output in horsepower, etc. There obviously should not be any bailout of the poorly performing sector of the automobile industry, namely that headquartered here in Detroit. (The new center of vitality and innovation, the thriving sector of the US auto industry, is in the Southeast, such as in Nashville.)

    By all means open the continental shelves, the interior continent, the deeper part of the Gulf of Mexico, the Arctic to exploitation to the fullest of our oil and gas reserves. It’s a matter of principle (not expediency).

    “dropping out of the job market because the job market is filled with illegal aliens”

    It depends on the jobs. In tech, you have legal (legalized) aliens who undercut pay as well. But I suspect the real problem now is crushingly high transportation fuel prices, which ripple through everything. Not everything is so affected. Ironically, I am in Detroit metro, Michigan (notorious for anti-business political economy), a state hemorrhaging people who are going elsewhere for jobs and a better life in various ways, but where I am — I moved here because of a good paying job here — they’re hiring so much right now there’s no room to place everyone in cubicles or offices and hiring has been braked simply because of a lack of room. It’s weird given how the rest of Michigan is (“You came here for a NEW JOB?”) and so much of the rest of the country. The fuel prices raise the cost of everything (so much is transported) and it’s going to likely get worse before it ever gets better.

  • Jim_Satterfield

    Yes, it’s been coming for a long time. But it is the nature of the free market to not anticipate the future, only to react once it’s been slapped in the face with a fact. There is no motivation to anticipate a market that does not yet exist. In addition the oil companies shut refineries on purpose back when gas was cheaper to give them a “reason” to raise prices. Here is a site that reprints an article from the Kansas City Star on the issue.

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