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10 Reasons Employment Is Worse Than You Think

Posted Jul 14, 2009 09:26am EDT by Joe Weisenthal in Media, Newsmakers, Recession

From The Business Insider, July 14, 2009:

Mort Zuckerman (of all people) has an op-ed in today's WSJ explaining why the jobs situation, which is quite clearly horrific, is even worse than you think.

Here are his points, condensed

  • 185,000 workers in the June number were the product of statistical sampling, but could not be verified by the government.
  • Companies are asking employees to take unpaid leave.
  • 1.4 million unemployed workers weren't counted because they're not searching for work.
  • Part-time employment has doubled to 9 million.
  • The work week is 48 minutes shorter than when the recession began.
  • The number of long-term unemployed (4.4 million) is at an all-time high.
  • There were no wage gains in June.
  • The goods-producing sector lost over 223,000 jobs just in June.
  • When business picks up, businesses will just add hours to existing workers, rather than create new jobs.
  • Old business lines are being eliminated entirely, not shrunk down, decreasing the odds that the unemployed will be able to find work.

Says Zuck: It's time for a serious second stimulus -- not a hodge podge of pork and transfer payments, but a truly big and bold infrastructure program (like what we were promised the first time, but which didn't happen) to put people to work.

Related stories from The Business Insider:

257 Comments

jcamel77
jcamel77 - Tuesday July 14, 2009 09:36AM EDT

ANd a reason why unemployment is better than you think: those who are working under the table not included in the sample

JulieH
JulieH - Tuesday July 14, 2009 09:37AM EDT

Let the recipients of the pork/earmarks return that money (money that we borrowed from Asian savers) ,then transfer that same money to small businessess. Under no circumstances should we borrow MORE money.

Art
Art - Tuesday July 14, 2009 09:38AM EDT

Eliminate corporate income tax, eliminate capital gains tax, eliminate inheritance tax, make the Bush tax cuts permanent and we will see prosperity beyond our wildest dreams. Also, balance the federal budget.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:39AM EDT

And we are sending jobs to China as fast as we can so we can have more Cheap Chinese Crap. Just look at all the money we saved by importing radioactive drywall from China. And Obama wants cap and trade unilaterally, which will send even more jobs to China.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:40AM EDT

And we are sending jobs to China as fast as we can so we can have more Cheap Chinese Crap. Just look at all the money we saved by importing radioactive drywall from China. And Obama wants cap and trade unilaterally, which will send even more jobs to China.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:41AM EDT

jcamel77 - Tuesday July 14, 2009 09:36AM EDT. It's a repeat of the 1970's when nearly everybody worked under the table.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:47AM EDT

It ain't worse than I think. I'm unemployed and broke.

you
- Tuesday July 14, 2009 09:48AM EDT

These unemployment numbers are a window into our financial future. There can be no recovery until firms start hiring again. Foreclosures and bankruptcies will continue well into 2010 as people continue to lose jobs. Many people have had their work hours cut to less than 40 hours per week which in effect is a 25% cut in salary. All of this is a result of the reckless deficit spending by government. Taxes should be reduced on business to allow them to grow and start hiring again. By raising taxes on business, they simply lay off workers to reduce costs. Taxing the "rich" always sounds good, but in practice it is this group that hires and puts people to work. Poor people are not in a position to hire anyone obviously. *****Total IRS tax collections from individuals totaled 1.1 trillion dollars last year. The interest on our national debt is 482 billion dollars, or almost 50% of everything collected. Obama must stop the spending, replace what was stolen from the Social Security Trust Fund, reduce the size of government, and start paying down the debt instead of increasing it by 400% in his first term.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:49AM EDT

Eliminate corporate income tax, eliminate capital gains tax, eliminate inheritance tax, make the Bush tax cuts permanent and we will see prosperity beyond our wildest dreams. ----------------------------------------------------------------------------------------------------------------------------------- You are a dreamer. Your plan to achieve “prosperity” would only benefit a relative handful of well-heeled players. Nice try. Keep dreaming those BIG dreams, kiddo!

thomasromancer
thomasromancer - Tuesday July 14, 2009 09:55AM EDT

Gee, ever wonder where the money will come from to pay down the country's debt? Let's see, I bet other countries will lend us money so we can pay them back minimal amounts as the interest climbs higher and higher. Sort of like a United States using credit cards to pay the payments on their other credit cards. After all this is the new American Capitalism. Don't produce anything and just borrow until you have consumed yourself.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:55AM EDT

great thinking....not. What you're suggesting would be paying half of the people to dig holes in the morning and then pay the other half to fill them in later. The best thing to do right now is simply let the real business cycle run it's path and for the market to find equillibrium once again, like it does after every recession.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:55AM EDT

If we do not make bold moves to insure our future we will be lost. Bush tax cuts and people not wanting to pay their share to keep up the infrastructure of this country are what got us to this point. Forget unemployment, that is for a temporary loss of job - these jobs are gone forever. The government should employ these people directly to build the new energy infrastructure we need for the next century. This is what needs to be done and hopefully the greediest among us won't stop it. And yes, I pay a lot of taxes myself. But I don't think that I would have the luxury of the type of job I have if the investment wasn't made in our roads, schools, etc.

hadenoughgov
hadenoughgov - Tuesday July 14, 2009 09:57AM EDT

Also don't forget the selfemployed who are out of work but don't qualify for unemployment coverage. Im thinking the real number is probably 18-19% right now.

Ronnie
Ronnie - Tuesday July 14, 2009 09:58AM EDT

No more stimulus. No more stimulus. No more stimulus. Drastically cut federal, state, county, city taxes. Drastically reduce gov't restrictions on operating business, such as minimum wage and government requirements. Let us, the people, organize our business affairs as we see fit. Cut ALL US government aid of all sorts to ALL foreign governments. We must stop believing in the fantasy that politicians have the answer to how to address this... or much of anything. They are men and women just like the rest of us, no better.

Howard
Howard - Tuesday July 14, 2009 09:59AM EDT

A another stimulus will not help unless it is directed straight to the taxpayer in the form of tax cuts or direct payments which should be much larger than the Bush rebates. A waiver of payroll income taxes for at least for 12 or more months would help inject money directly into our economy. Anyting such as this would be a shot in the arm for the middle class and businesses. Our economy has not hit bottom if we continue to build government. All of the jobs Obama has created has been in building the government, this is doing nothing but costing taxpayer dollars to pay for these made up positions. We need to be making manufacturing jobs to put people back to work and not building lines at the unemployment office. We need to change Congress next year and hope to slow down Obama on his useless spending or we as a nation of Obama voters and non-Obama voters are going down as one. If you have dollar savings in the banks they won't be worth anything when this is all said and done.... Let us change Congress and save our country... GOD BLESS AMERICA!!!

shags1_23
shags1_23 - Tuesday July 14, 2009 09:59AM EDT

The federal TARP should have been distributed to small and medium sized business owners as government sponsored, low-interest loans to stimulate jobs and the economy. The dinosaurs that could not keep up should have been allowed to die off. An emphasis placed on small and medium sized manufacturers would have given us something real to export again. The only things we have been exporting for a while now are jobs and money.

you
Yahoo! Finance User - Tuesday July 14, 2009 09:59AM EDT

If we do not make bold moves to insure our future we will be lost. Bush tax cuts and people not wanting to pay their share to keep up the infrastructure of this country are what got us to this point. Forget unemployment, that is for a temporary loss of job - these jobs are gone forever. The government should employ these people directly to build the new energy infrastructure we need for the next century. This is what needs to be done and hopefully the greediest among us won't stop it. And yes, I pay a lot of taxes myself. But I don't think that I would have the luxury of the type of job I have if the investment wasn't made in our roads, schools, etc.

you
Yahoo! Finance User - Tuesday July 14, 2009 10:05AM EDT

I'm a small business owner who is soon to join the ranks of the unemployed, along with my last 5 employees. When my line of credit came up for renewal the bank raised the interest rate to 12%. This did not put us under but was symptomatic of a more basic problem. The very core of the problem is the fact that the cheap money that filled the pockets of our customers has turned into expensive debt. This fact will not change very soon. Recovery will be very slow. Corporate greed and consumerism are two sides of the same coin.

you
Yahoo! Finance User - Tuesday July 14, 2009 10:05AM EDT

Just come out and say it! The government needs to give everyone everything they've ever wanted. And working is unfair too. Plus, if you voted for this current potus you get a pink pony too! Life was unfair until we elected BHO!

Art
Art - Tuesday July 14, 2009 10:05AM EDT

Stay unemployed fool.

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