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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:

256 Comments

Dennis
Dennis - Tuesday July 14, 2009 10:09AM EDT

No more tax cuts for the wealthy or business. We must pay for our debt and our wars. The free ride is over and debt must be paid and savings must go up. The stock market will go down further, the only question is when. Family income, when adjusted for inflation has been dropping since the 1970's. The only group to benefit were the wealthy whose income has gone thru the roof. We can't continue to encourage companies that send jobs overseas with better tax breaks nor continue to pay the very rich more to find ways to reduce the income of the middle and working classes.

taopraxis
taopraxis - Tuesday July 14, 2009 10:10AM EDT

To understand the origins of the body politic, read the motto on the Statue of Liberty: "...poor, tired, huddled masses yearning to breathe free...wretched refuse..." Ersatz money, ersatz markets, ersatz freedom.

Yahoo! Finance User
Yahoo! Finance User - Tuesday July 14, 2009 10:12AM EDT

rc_stocks – “Drastically reduce gov't restrictions on operating business, such as minimum wage and government requirements.” ------------------------------------------------------------------------------------------------------------------------------------ Another pathetic dreamer looking to throw out all of our laws for the benefit of a greedy few.

Ray
Ray - Tuesday July 14, 2009 10:13AM EDT

The govenment has said we are right on track with the recovery. This is what was expected. The economic recovery will kick in over the next couple of years. Green jobs for america are on the horizon.

brotha speed
brotha speed - Tuesday July 14, 2009 10:14AM EDT

Let's take back the offshored jobs that were sent to India, Central & South America & bring them back into the US. We do a much better job of fulfilling, managing & implementing those jobs anyway. Don't buy anything made in China or Japan. Buy American

Luther
Luther - Tuesday July 14, 2009 10:16AM EDT

You people that want to buy down the debt need to go get a primer on the Fed and see how its really done. Our debt is controlled through treasury instruments. The Fed buys and sells those to create and remove money globally. Its not as easy as you think. If we are going to buy down our debt the only way we have to do that is make the Fed buy up all the Treasuries on the open market assuming foregin countries will sell and assuming the Fed would comply. This will pump unprecedented amounts of new money - dollars - into the global economy. What happens to the value of our dollar then, which by the way as you all know is backed by absolutely nothing.

WolfTalk101
WolfTalk101 - Tuesday July 14, 2009 10:18AM EDT

We are in a catch 22 - the govt is to big and should be half its size but addressing that problem today will certainly not help in this environment. I don't see the politicians taking a 10% pay cut but they are more then willing to force those making more then 250k a year to take pay cuts in the form of income taxes. And that is just a myth as they are raising taxes on everyone in more subtle ways.

skeptic
skeptic - Tuesday July 14, 2009 10:19AM EDT

First, we need to reinstate import duties, so that products manufactured HERE are cheaper than buying imported goods. That is the only way to create jobs here. A stimulus package can work if it actually brings results that benefit business. For example, widening freeways to reduce traffic congestion. Where do we get the money? For one thing, we can curb these ridiculous government pension benefits. They are calculated on the one year the employee made the most money. So government employees all work a ton of OT for one year, so they can actually make MORE retired than they did when they were working. NO private industry does that!

Yahoo! Finance User
Yahoo! Finance User - Tuesday July 14, 2009 10:24AM EDT

I haven't been in here in a few weeks. Has Tech Ticker killed off America yet? I keep waiting. I believed them in March after everything fell so hard, but lately..........I don't know. I'm making money on longs and options, but they keep saying in here 'the sky is falling, the sky is falling'. My shorts are not doing so well but I can wait. :) So tell me, when is the market going to die off completely so my shorts will go up? I have a new word for this message board... FLAT. How's that for a market description? Flat as a board. One day ..Up 5 cents a share @ open, Down 3 cents a share by close. Next day...Up 10 cents a share @ open, Down 8 cents a share by close. FuhhhhhLaTTTTTTTT.. My 2 cents worth.

shags1_23
shags1_23 - Tuesday July 14, 2009 10:27AM EDT

rc_stocks - Tuesday July 14, 2009 09:58AM EDT Drastically reduce gov't restrictions on operating business, such as minimum wage and government requirements. ============================================ So you want to make American workers subject to the same conditions as illegal migrant workers?

Yahoo! Finance User
Yahoo! Finance User - Tuesday July 14, 2009 10:27AM EDT

With A Huge...$$$ 18- TRILLION DOLLARS.."Deficit" And Growing...By The Minutes....Projected...15%- Unemployment ..Across..The Entire U.S.A......California Is..."BROKE"....Jobs Are Still...Being Sent Overseas....Gasoline Prices Are Rising....The Chicago Cubs Are Also Going...Into ..."BANKRUPTCY"....COMMERCIAL..Real Estate....Is ANOTHER...."TICKING TIME BOMB"...Ready To EXPLODE....Fairly Soon....The Chinese ARE "WORRIED" About Their...Investment In U.S. Treasury Bonds......And The U.S. DOLLAR IS...."SINKING" Faster Than The TITANIC.....Other than All Of The Above....Is A "NORMAL" Day...Here In The U.S.A.{Dont Worry....Be Happy}

Robert
Robert - Tuesday July 14, 2009 10:27AM EDT

I have a PhD in a science (not art history) and 25+ experience in industry and I can't get a job paying $10 per hour. Encouraging kids to go into science is just messing with their lives. TV shows like CSI and NCIS have nothing to do with real life jobs. It is better to be a plumber or an electrician. Those jobs won't be going to China.

Yahoo! Finance User
Yahoo! Finance User - Tuesday July 14, 2009 10:28AM EDT

Why can't we revamp the first stimulus? Just Stupid. When a tire goes flat on a brand new car you don't go buy a new car.

Brian M
Brian M - Tuesday July 14, 2009 10:35AM EDT

Yeah, and when unemployment was reported at 4.5% how many people were actually out of work. How many people were working part-time or under employed. This has been a problem for at least the last decade. People are just starting to realize this when then recession hit. How much worse is employment now than 2 years ago? Not as bad as we think. Unemployed people feel off the list after 6 months 2 years ago, now it is 12 months. The employment landscape is nothing new! Get a clue...

- Tuesday July 14, 2009 10:35AM EDT

The Treasury Department sells our bonds at "Auction",,,and when other countries refuse to buy them or do not buy enough of them,,then the "FED" has to step in and buy what ever was left. The Treasury has to do this in order to keep our government running and to keep raising money that Obama is recklessly spending. ^^^^Obama just "gave" 63 BILLION dollars to Ghana, Africa !!??? How is this helping the unemployed in THIS country? That amount would have bailed out California 3 times over! Obama and the gang have got to stop the spending with borrowed money.

- Tuesday July 14, 2009 10:36AM EDT

Where did everyone come from??? These can't be the same ppl that voted this schmuck Hussein in?? My Recipe: (no different than most here) Eliminate the following... - Fed Government funding of ANYTHING!! PERIOD! Only the wacky stuff gets government funding. If the privet sector does not want it, we should not be forced to pay for it. - Property tax - cap gains - inheritance tax - death, marriage, and the like should never be - payroll tax and instate a sales tax (everyone pays including illegals. Harder to hide money when you are spending it) - tax loopholes. - the 2 party system - CNN, NBC, ABC, oh, ok. a bit too much? http://pajamasmedia.com/rogerkimball/2009/03/26/planned-economy-or-planned-destruction-or-plus-ca-change/

- Tuesday July 14, 2009 10:38AM EDT

Where did everyone come from??? These can't be the same ppl that voted this schmuck Hussein in?? My Recipe: (no different than most here) Eliminate the following... - Fed Government funding of ANYTHING!! PERIOD! Only the wacky stuff gets government funding. If the privet sector does not want it, we should not be forced to pay for it. - Property tax - cap gains - inheritance tax - death, marriage, and the like should never be - payroll tax and instate a sales tax (everyone pays including illegals. Harder to hide money when you are spending it) - tax loopholes. - the 2 party system - CNN, NBC, ABC, oh, ok. a bit too much? http://pajamasmedia.com/rogerkimball/2009/03/26/planned-economy-or-planned-destruction-or-plus-ca-change/

Reedersong
Reedersong - Tuesday July 14, 2009 10:39AM EDT

Don't forget....the black market players are still employed....just not on the books.

Marvin
Marvin - Tuesday July 14, 2009 10:43AM EDT

There is always work for those that want to work. It may not be the work one was educated for but one must be willing to be flexible until times improve. Find out what those that are working and retired need and fill that niche. Advertise to increase volume. Do what you can do yourself until your business gets so big that you need to hire others. I did this myself for twenty-five and a third years around my schedule in a steel mill as I operated a wall cleaning business (serviced homes - 94%, businesses - 5% and government - 1%) It was alot of work but no one else in NW Indiana was doing what I was doing with a machine.

James
James - Tuesday July 14, 2009 10:46AM 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!________________________________________________ They just forgot : SHRINK THE FED BY HALF. Then we will have prosperity.

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