The Jobs Crisis Is Far from Over

Despite an upswing in hiring during 2011, the jobs crisis could last many more years as millions of Americans struggle to find work.

In Orlando, Florida, Brenda Solomon lost her retail job last May at a department store and was unable to find even temporary work during the holiday season. "I've tried and tried and tried," Solomon, 58, said on Friday while visiting a job center.

Related: The 10 Best Cities to Find a Job

Earlier, the U.S. Labor department said employers added 200,000 jobs during December, many more than expected by Wall Street. In 2011 as a whole, 1.64 million jobs were created, well above the 940,000 in 2010 and the best showing since 2006.

But the amount of jobs in the economy is still about 6.1 million lower than before the brutal 2007-2009 recession. At December's pace of gains, it would take about 2 1/2 years just to get back to pre-recession levels of employment. That means many people will be in for an agonizing wait.

In December, 5.6 million of the nation's unemployed had been out of work for at least six months, the Labor Department data showed, only slightly lower than the previous month.

Laquanda Carmichael has been without work for just over a year and has seen no improvement in the labor market. "It's been the same to me. I have a lot of discouraging days," the 39 year-old former science teacher and hospital worker said. "I'm looking for anything right now. Warehouse processing, hospitality, anything."

While jobs creation certainly picked up in the United States during the end of the year, economists point out that even a gain of 200,000 underwhelms considering constant growth in the population and the still-high 8.5 percent unemployment rate. Princeton University economist Paul Krugman said that at December's pace it could take a decade for the labor market to recover from the recession.

In a back-of-the-envelope calculation, Krugman was considering that the country's growing population adds at least 100,000 people to the workforce every month. "We need much faster job growth," he wrote on his blog. "It says something about how beaten down we are that this (jobs report for December) is considered good news."

The unemployment numbers reflect a persistent difference between those with a higher education and those without - especially in certain sectors like engineering. Nearly 90 percent of 2011 graduates from Worcester Polytechnic Institute in Massachusetts got jobs or attended graduate school - almost the same level as before 2008.

Jeanette Doyle, director of the school's Career Development Center, said there was a 7 percent uptick in late 2011 in the number of companies at the school's fall recruiting event, and 17 companies were on a wait list to get in.For lower-paid Americans, the picture is very different.

Construction worker Richard White, also at the job center in Orlando, has not had steady work in the last three years, and gets by on occasional stints doing electrical work or carpentry.

In December, the construction industry added 17,000 jobs. But that sector, devastated by a burst housing bubble that helped trigger the last recession, has even farther to go than the rest of the economy before it can recover. There were still almost a third fewer construction jobs in December than at the industry's pre-recession peak in August 2006.As for the December's advance, White said: "I'm not seeing it."

(Additional reporting by Jilian Mincer in New York; writing by Jason Lange in Washington; Editing by Diane Craft)

 

Despite an upswing in hiring during 2011, the jobs crisis could last many more years as millions of Americans struggle to find work.

In Orlando, Florida, Brenda Solomon lost her retail job last May at a department store and was unable to find even temporary work during the holiday season. "I've tried and tried and tried," Solomon, 58, said on Friday while visiting a job center.

Related: The 10 Best Cities to Find a Job

Earlier, the U.S. Labor department said employers added 200,000 jobs during December, many more than expected by Wall Street. In 2011 as a whole, 1.64 million jobs were created, well above the 940,000 in 2010 and the best showing since 2006.

But the amount of jobs in the economy is still about 6.1 million lower than before the brutal 2007-2009 recession. At December's pace of gains, it would take about 2 1/2 years just to get back to pre-recession levels of employment. That means many people will be in for an agonizing wait.

In December, 5.6 million of the nation's unemployed had been out of work for at least six months, the Labor Department data showed, only slightly lower than the previous month.

Laquanda Carmichael has been without work for just over a year and has seen no improvement in the labor market. "It's been the same to me. I have a lot of discouraging days," the 39 year-old former science teacher and hospital worker said. "I'm looking for anything right now. Warehouse processing, hospitality, anything."

While jobs creation certainly picked up in the United States during the end of the year, economists point out that even a gain of 200,000 underwhelms considering constant growth in the population and the still-high 8.5 percent unemployment rate. Princeton University economist Paul Krugman said that at December's pace it could take a decade for the labor market to recover from the recession.

In a back-of-the-envelope calculation, Krugman was considering that the country's growing population adds at least 100,000 people to the workforce every month. "We need much faster job growth," he wrote on his blog. "It says something about how beaten down we are that this (jobs report for December) is considered good news."

The unemployment numbers reflect a persistent difference between those with a higher education and those without - especially in certain sectors like engineering. Nearly 90 percent of 2011 graduates from Worcester Polytechnic Institute in Massachusetts got jobs or attended graduate school - almost the same level as before 2008.

Jeanette Doyle, director of the school's Career Development Center, said there was a 7 percent uptick in late 2011 in the number of companies at the school's fall recruiting event, and 17 companies were on a wait list to get in.For lower-paid Americans, the picture is very different.

Construction worker Richard White, also at the job center in Orlando, has not had steady work in the last three years, and gets by on occasional stints doing electrical work or carpentry.

In December, the construction industry added 17,000 jobs. But that sector, devastated by a burst housing bubble that helped trigger the last recession, has even farther to go than the rest of the economy before it can recover. There were still almost a third fewer construction jobs in December than at the industry's pre-recession peak in August 2006.As for the December's advance, White said: "I'm not seeing it."

(Additional reporting by Jilian Mincer in New York; writing by Jason Lange in Washington; Editing by Diane Craft)

 

9 Things You Need to Know About Rick Santorum

Ron Paul: 16 Eye Opening Things You Don't Know

Ron Paul Helps Romney Divide and Conquer

The 5 Worst Places to Retire in the U.S.

Why It's Cheaper to Dine Out Than Eat In

Google's Cloud Robotics Could Threaten Jobs

12 Things That Will Get Cheaper in 2012

10 Insanely Overpaid Public Employees

9 Things You Need to Know About Rick Santorum

Ron Paul: 16 Eye Opening Things You Don't Know

The New American Dream: Rent, Don't Buy

Why It's Cheaper to Dine Out Than Eat In

10 Bad Investments No Sane Person Should Make

Want to Be Unemployed? Get This College Degree

12 Things That Will Get Cheaper in 2012

Robots to Take 500,000 Human Jobs...for Now

Connect with The Fiscal Times

var MMI_RNS = (new String(Math.random())).substring(2, 11); var MMI_URL="http://msite.martiniadnetwork.com/index/?pid=1000002253102&sid=1000100663580&loc="+ encodeURIComponent(window.location.toString()) + "&rnd=" + MMI_RNS; MMI_ClickURL += ((MMI_ClickURL.split("/").length - 1) % 2 )? "/": ""; if (document.referrer != "") MMI_URL += "&ref=" + encodeURIComponent(document.referrer.substring(0,255)); document.write(""); if(typeof(OAS_pubclick) == "undefined") var OAS_pubclick = 'http://msite.martiniadnetwork.com/action/track/type/0/pid/1000002253102/sid/1000100663580/loc/' + encodeURIComponent(window.location.toString().substring(0,255)) + '/pubclick/' + MMI_ClickURL; var OAS_sitepage = "thefiscaltimes.com/Etrade_Q4_TestCampaign"; var OAS_pos = "x03"; var OAS_RNS = (new String(Math.random())).substring(2, 11); OAS_searchterms == "" ? OAS_searchterms = "" : OAS_searchterms += "&"; if (page_count != "on") {OAS_taxonomy += "&oas_pv=no_analytics&";} if (typeof OAS_rdl == "undefined") { var OAS_rdl = ""; var OAS_CA = "";} OAS_query = "_RM_HTML_CLICK_=" + OAS_pubclick + "&" + OAS_searchterms + "XE&" + OAS_taxonomy + "&" + OAS_rdl + "&if_nt_CookieAccept=" + OAS_CA + "&XE"; document.write(""); document.write(""); if (typeof MMI_AdScript == "function") MMI_AdScript(1,"x03"); Ads by Google On Our Radar PHOTO GALLERIES

View a collection of photo galleries from The Fiscal Times.

Read More Ron Paul: 16 Eye Opening Things You Don't Know

Read More The War in Europe Escalates"”No Guns, Just Butter

Read More 9 Things You Need to Know about Rick Santorum

Read More

Sign up to get our Free Newsletters!

Sign Up to Get theFiscal Times & OurNews Alerts.

Connect to The Fiscal Times

Facebook Twitter Google+ RSS Home Policy + Politics Big Decisions White House Congress Defense State and Local Federal Budget The Fed and Treasury Health Care Social Security Taxes Election 2012 People Business + Economy U.S. Economy Markets Employment Housing Global Economy Eurozone China Sectors + Companies Energy Finance Health Care Retail Technology The Apple Economy Life + Money Personal Economics Real Estate Retirement Health Care Family + Money Investing Taxes Careers Jobs Small Business Education 21st Century Skills College and University Columns Blogs Media Center You are here: Home > Life + Money You are here: For Many Americans, Jobs Crisis to Last Many Years Home | Policy + Politics | Business + Economy | Life + Money | Columns | Blogs | Media Center Advertising | Contact Us | About Us | Sitemap | Terms of Use | Privacy Policy The Source For All Things Fiscal © 2009-2012 The Fiscal Times. All rights reserved. var gaJsHost = (("https:" == document.location.protocol) ? "https://ssl." : "http://www."); document.write(unescape("%3Cscript src='" + gaJsHost + "google-analytics.com/ga.js' type='text/javascript'%3E%3C/script%3E")); var pageTracker; var gapathname = window.location.pathname, gasearch = window.location.search, gahash = escape(window.location.hash); try { pageTracker = _gat._getTracker("UA-12472167-3"); pageTracker._trackPageview(gapathname + gasearch + gahash); } catch(err) {} function trackEvent(category, action, optional_label, optional_value) { pageTracker._trackEvent(category, action, optional_label, optional_value); } var _baq = _baq || []; _baq.push(['setClientId','y06fdo']); _baq.push(['trackPageView']); (function () { var s = document.createElement('script'); s.src = ('https:' == document.location.protocol ? 'https://commerce.us.reuters.com' : 'http://mediacdn.reuters.com') + '/pulse/2/trb.js'; (document.getElementsByTagName('HEAD')[0] || document.getElementsByTagName('BODY')[0]).appendChild(s); }()); var _qevents = _qevents || []; (function() { var elem = document.createElement('script'); elem.src = (document.location.protocol == "https:" ? "https://secure" : "http://edge") + ".quantserve.com/quant.js"; elem.async = true; elem.type = "text/javascript"; var scpt = document.getElementsByTagName('script')[0]; scpt.parentNode.insertBefore(elem, scpt); })(); _qevents.push({ qacct:"p-c4gb0ythXExpc" }); //

Read Full Article »


Comment
Show comments Hide Comments


Related Articles

Market Overview
Search Stock Quotes