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May 2014 Jobs Reports: Good News, Bad News

10:36 am in Economy, Financial Crisis, Jobs, Unemployment by dakine01

Unemployment Report

Unemployment Report

According to this article this morning from CNN Money, the official BLS Jobs Report for May, due this Friday morning, will show that the US economy will finally have recovered all the jobs lost in the Great Recession:

Set your sights on this number: 113,000.

That’s how many jobs the U.S. economy needs to hit its break-even point, to finally recover all the jobs lost in the financial crisis.

Get ready, because we’re about to get there this Friday.

That’s when the U.S. Department of Labor will release its May jobs report, and the outlook is rosy. Economists surveyed by CNNMoney expect the U.S. economy added 200,000 jobs in May.

I guess that’s the good news. But as the article also notes, it is a purely symbolic measure:

Breaking even is a key milestone, but was a long time coming. It took just two years to wipe out 8.7 million American jobs, but it took more than four years to recover them all, making this the longest jobs recovery on record since the Department of Labor started tracking the data in 1939.

Plus, the jobs that have returned are not necessarily the same ones we lost, nor are they in the same regions.

Here’s the key – through all these four plus years of job growth to get back to where we were at the start of the Great Recession, we have been falling behind as it takes roughly 90,000 new jobs each month just to keep up with the new people entering the job market each month. If we take it back to the beginning of the Great Recession in December 2007, we are still in the hole on needed jobs by a bit over 7M (6.5 (years) x 12 (months per year) x 90K (jobs per month) = 7,020,000.)

The current month report from ADP continues the good news/bad news. The good news is 179K new jobs in the private sector (though fewer than “economists predicted.”) The bad news (although painted as good news by Reuters):

U.S. companies hired far fewer workers than expected in May, but an acceleration in services sector growth supported views the economy was regaining strength after sagging early this year.

While other data on Wednesday showed the trade deficit hit its widest point in two years in April, a rise in imports to record highs underscored the economy’s resilience.

Why is the increase in service sector jobs bad news? Because service sector jobs tend to be lower wage.

This blog post from the Washington Post’s Wonkblog from 8/31/2012 covers this:

The United States lost about 8.1 million jobs after the recession began in late 2007. The economy has since recovered about 3.3 million of those jobs, starting in early 2010. That, in itself, should alarm policymakers. The labor market is still in a deep, deep hole.

But in some respects, the situation is even bleaker than that. The types of jobs that have come back so far don’t seem to be paying as well as those that were lost.

A new report from the National Employment Law Project finds that low-wage jobs, paying $13.83 per hour or less, have dominated the recovery to date. In many cases, they appear to be replacing higher-paying jobs that were lost in the first place.

That article was not the first time the Post had noticed the low wage aspect of the “recovery” as I noted in this blog post from April 2011.

The CNN article linked at the top of the page also showed a little “moving of the goalposts” in the world of economic and jobs reporting. Buried way down at the bottom of the page were these two paragraphs:

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The Season of Shopping

11:34 am in Economy by dakine01

Well, here we are, the Saturday after Thanksgiving and the shopping season is upon us. Of course, some stores have had Christmas decorations up since before Halloween. Remember when the shopping and calendar years had distinct seasons? I do understand the desire of retail stores to push the envelope since for oh so many retail stores, the Christmas sales are the difference between an annual profit and loss for the year. While the term “Black Friday” did not originally have this definition, the idea that the Friday after Thanksgiving is the day where a business passes from the red (loss) into the black (profit) has gained some credence.
04a.MGBW.1526.14thStreet.NW.WDC.3January2012
I started working in a men’s clothing store (M. Goldberg, Inc) as a sales clerk/stock clerk/janitor when I was thirteen years old until I was twenty. During most of the year, we opened at 8AM Monday through Saturday, closing at 5:30 M – F and at 6PM on Saturday. After Thanksgiving though, we were open until 8PM, all six nights a week until Christmas Eve when we would close at 5PM. Even as I attended military high school and college, any weekends or holidays I was home and most summers, I would be put to work. We didn’t have or need special sales to get people to come into the store. The big sale was always post-Christmas with the “January Clearance.” We also had a “July Clearance,” conveniently enough after Father’s Day. Most years, the day or two before Father’s Day in June, we would have daily revenues comparable to the days in the week before Christmas.

During the years I worked at the store, my small hometown of about 5500 people (with surrounding county total population of about 15,000 or 16,000 people) could and did support two fine men’s stores (Gordon and Smith was the other men’s store), four or so fine ladies shoppes, two or three jewelry stores, two locally owned hardware stores, two “five and ten cent stores,” a Dollar store, a sporting goods store, a couple of department stores, a couple of furniture stores, and a Sears & Roebuck catalog store. In multiple cases these competitors would be side-by-side, directly across the street from each other or on opposite street corners. Although Cincinnati was 60 miles north and Lexington was 35 miles south, few people would drive to those cities as it was seemingly a l-o-n-g trek to do so. They pretty much shopped locally or not at all. The reality is, most people could park their car somewhere downtown and do a days shopping and not walk as much as they do today when they go to a mall.

I’ve always felt that those days could have served as a Master’s class in micro-economics. Each of these businesses had been in town for decades. Each of them carried good, name brands. The men’s store I worked for started from a bit of a disadvantage as we did not carry boy’s clothing at all (which kind of made it difficult for me when I started working there as I was not quite large enough to fit small men’s sizes so my options in purchasing good clothing were initially limited.) In those days, there was parking on both sides of most streets plus the traffic flowed in both directions and the downtown area was vibrant with cars and people on the street. I do not know how the other businesses operated but we had a section in one back corner of the store where all the lay-aways were kept for the people who wanted to hold something and pay for it as they went along. We also had two thick “credit books” (A – L, M – Z) with each book being 3 to 4 inches thick. I was “trustworthy” so would charge most of my clothing and that’s where most of my earnings went – to pay the clothing bill.

The day after Christmas (and the Monday after Father’s Day) usually had quite a bit of traffic in and out of the store but maybe not so much in the way of sales as those were big exchange days. Wrong size, wrong color, damaged, etc. When we were doing exchanges, we always tried to find the identical item in the correct size as that made it so much easier all the way around. Then we would close the store for a couple of days to get ready for the big sale, with all the mark downs on that season’s men’s fashion (even though most of the styles did not change in men’s clothing that much).

As a kid, we always were looking forward to receiving that year’s Sears & Roebuck Christmas catalog (also known as the “wish book.”) I remember looking through that catalog every year. First time through it was always, “I want that and I want that and I want that…” on and on with all the toys I wanted. Sometimes it might even be a toy that had been “as seen on TV!” A couple of years, I even received some of the things I had wanted from the catalog!

Now of course, it seems that every child’s television show has the marketing tie-ins for just about any product you can imagine. So Toys “R” Us opens on Thanksgiving with special deals already gone hours after the stores open.

I’m thinking progress has been a bit like a regression in some ways.

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor
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Life in the Safety Net

8:20 am in Economy, Food, Government, Jobs, Politics, Social Security, Unemployment by dakine01

If you have been reading my posts, you know I am among the long term un/underemployed. I was laid off from my then employer in April 2004. I know most economists place the official start of the Great Recession in December 2007 but given their continual “surprise” at how the economy does not conform to their expectations, the reality is a bit different. When I was laid off, I had spent the past seven to eight years working within IT on various State and Local Government social service projects. Unfortunately for me, many states had started cutting back in this area starting around 2001. Declining tax revenues led to cut-backs to contracts led to further declining revenues, etc.
Picture13
Over the past nine years, I spent my unemployment benefits (I only received 6 months of unemployment benefits since my layoff preceded the official recession and advent of extended benefits.) I spent my savings. I cashed in my 401K and SEP/IRA (the best benefit there was even with paying the early cash-in penalties, I still got to spend more of the funds on myself instead of seeing the balances swirl down the toilet when the market crashed.) In 2007, I landed a part-time, online job that has been a god send.

I finally swallowed my pride in January of 2012 and applied for Supplemental Nutrition Assistance Program (SNAP) benefits (formerly known as Food Stamps). I was approved for benefits of $200 per month from Florida from February 2012 through June 2012 when I would have to be re-certified. I did not re-certify at that time as I was dealing with my late sister’s estate by June and was able to pay myself a nominal salary. Since then, I have moved from Florida back to my home state of Kentucky. After I wrote this post in early July, documenting my soon to be homelessness, a friend from my hometown of Cynthiana, KY offered me a room in her home for Dan’l (my cat) and me. I am paying a nominal rent, my share of the utilities plus helping around the house. I have since applied for SNAP benefits here in Kentucky. I was initially denied due to lack of information, then approved for $159 per month then after a review after the state had received the remainder of my supporting information, the benefit amount was upgraded to $189 per month starting November 1. I do not know if the cuts to the over all SNAP program will affect my benefits but if there is a cut, so be it. I am fortunate enough to know how to cook and purchase food for myself so I can generally live within the benefit. I most likely would have to cut out the occasional treat of cookies or soda.

At this point, I am just trying to hang on until I reach age 62 next June and can apply for early Social Security. According to the SSA, my benefit for Social Security at age 62 is $1,371, a little above the current average overall benefit of $1,271 (as of September 2013.)

I do not have a car any longer. Maybe next year when I start the social security, between that and my small salary from my online job, I might be able to buy something (and pay the taxes and title and upkeep and maintenance and gas and insurance.) Once I am collecting social security, I will most likely no longer qualify for SNAP benefits and that’s OK as I will have been able to use them to stay alive until I reached the “retirement” point.

Through all of this, I know I am still luckier than most. I have received help from family and friends that has kept a roof over my head. I am relatively healthy having had only a bad case of the flu back in early 2005 that I saw a doctor for, a cut on my hand in December 2005 that required an emergency room visit for four stitches (costing roughly $2,000 out-of-pocket as I am uninsured), and an infected tooth pulled at the dentist’s in January 2013 for $175. The dentist gave me a ‘scrip for free antibiotics to clear the infection before he pulled the tooth.

While I have been fortunate in many ways, I also know I am not alone. There are 900K veterans and 5K active military receiving SNAP benefits alone who will be impacted by the upcoming cut to the benefit level.

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It’s Time to Stop Digging

1:48 pm in Economy, Government, Media, Politics by dakine01

Well, the Republican Congressional Arson Committee was out-voted Wednesday and the government shutdown has ended and the debt ceiling has been raised. At least for a few months. Now come the analyses striving to set the Conventional Wisdom.

First up we had this from McClatchy on Tuesday, before the shutdown had been ended:

WASHINGTON — It may be one of the most serious missteps of the federal government shutdown.

After weeks of planning, the nation’s spy chief sent home nearly three-quarters of the workers at the government’s intelligence agencies when faced with the partial shutdown. The move, James Clapper later admitted himself, put the United States at greater risk of terrorist attacks. He then reversed course and brought thousands of employees back to work.

Fix The Jobs THEN Fix The Debt

Fix The Jobs THEN Fix The Debt

Of course, as I noted in this post the other day, when there is a shutdown, the managers are almost required to make things as painful as possible for the maximum numbers of people to show the people pushing for the shutdown what happens. For myself, I would have preferred more oversight people kept working than those within the NSA and other members of the so-called “Intelligence Community” being allowed to spy on average citizens within the US, but that’s just me.

Tiger Beat On the Potomac (h/t Mr Pierce) offers up an “Anatomy of a Shutdown.”

Bloomberg reports on the “Republican Civil War“:

A battle for control of the Republican Party has erupted as an emboldened Tea Party moved to oust senators who voted to reopen the government while business groups mobilized to defeat allies of the small-government movement.

CNN’s article on the ending of the shutdown was a bit pessimistic:

The debt cushion now extends through February 7, with current spending levels being authorized through January 15.

That means a few months of breathing room, but little more. After all, the bill doesn’t address many of the contentious and complicated issues — from changes to entitlement programs to tax reform — that continue to divide Democrats and Republicans.

Ah yes, our old friend “entitlement reform.” What a hoary old chestnut that is turning out to be. Why just yesterday the folks at “Fix the Debt” (Alan Simpson and Erskine Bowles’s attempt to stay relevant and invited on talking head shows) held a “Twitter chat.” As Business Insider noted, it did not go well:

“Fix the Debt” just felt Twitter’s sweet, trollish wrath.

Championed by Alan Simpson and Erskine Bowles, Fix the Debt — which The Nation magazine called a “fearmongering campaign to convince Americans that the deficits the United States has run throughout its history have suddenly metastasized” — held a Twitter live chat this afternoon to discuss next steps in America’s ongoing fiscal squabble.

And it didn’t go so well, with the #fixthedebtqa soon teeming with jokesters and those very much against Fix the Debt’s message.

My phrase of choice for people such as Simpson and Bowles and the rest of the austerity freaks is “willfully obtuse.” Between the shutdown, sequester, and overall fear-mongering of the last few weeks, the general economic consensus is the US economy took a $24B hit. Now, anyone who has read my posts these past few years is aware that I am not a big fan of most CW spouting economists but given how often they are surprised at the end results of things, my WAG is the $24B figure is probably conservative.

A note for the Fix the Debt folks (and Paul Ryan who used a Wall St Journal opinion piece to push for “entitlement reform”,) Harry Reid is quoted as saying, it ain’t happening. Now, Reid has backed off some of these type statements in the past, so we just have to make sure to hold him to his words.

I continue to be dumbfounded at the words and actions of people who think nothing of cutting funds for the elderly and the poor in order to throw more money at the DoD or Banksters or BigAg or Big Pharma or Big Insurance. As I noted here a few months ago, most people receiving Social Security are getting what amounts to less than a minimum wage. For many that is the only income they have. And as Forbes notes yesterday, minimum wage workers are not getting rich (though businesses that rely on them are and sticking the taxpayers with the bill.)

So all of you Beltway Village Idiots Pundits, Politicians, and Courtiers, why don’t we do something unique from these last half dozen year. Let’s create some decent paying jobs, build the economy in the US, send a few economic criminals to jail rather than giving them multi-million dollar bonuses, and see what the result is for the economy and those “entitlement” programs. You might be surprised that jobs would mean people paying in would extend the life of these programs with no action required to fiddle and fuck with them.

Besides, if the Russian astronomers are correct, we might be hit with an asteroid in August of 2032, making things moot.

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor
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No one could have anticipated, Government Shutdown Edition

9:39 am in Economy, Government, Politics by dakine01

I have been marveling these last few days at the whining coming from various news outlets and elected officials, especially those that tend to be a tad more right wing. It seems they believe that President Obama and the Executive Branch are making some decisions of what gets shutdown a little painful. This from Investors Business Daily probably captures the feeling reasonably well:

President Obama has made the public at large feel as much pain as possible from a government shutdown he’s betting will ultimately be blamed on Republicans; meanwhile, he and other politicians shield themselves from the pain.

US Capitol 2

US Capital

My response to this is “WHAT the FUCK else do they expect? When the government shuts down, that means there are no support people available at national parks and memorials. Funding for contracts is stopped. While there may be funds available for some aspects (Social Security for instance), there are not funds to pay the workers. Different pots of money are involved.

A friend sent me a link to this tweet from the last week of September that details the 17 government shut downs that have occurred since 1976. For six of those, I was on active duty in the USAF, working in the Accounting office. As a GI, I went to work regardless. I knew i would be paid, although maybe not on time if the shutdown lasted for too long. Fortunately for me (and my creditors and landlords), my pay wound up not being interrupted. For another three of the shut downs, I was a direct federal employee and for yet three more, I was a federal contractor. Each time, I was involved in some way or another in planning the response to the shutdown. As a GI or Federal employee, my involvement was generally just to be told yes or no if I was to come into work. As a GI, it was yes. As a civilian employee it was no.

However, as a contractor, I was more deeply involved in the planning of what to do for a shutdown. And we would do the “what-if” planning just about every year as we waited to receive our budget for the year, whether there was a shut down or not. A major part of the “what-if” would be structuring the support levels to provide the minimum required support to our client but do so in the way that could cause the most pain to show how indispensable we were.

As I see the various news reports about things such as the response of various Members of Congress to the shutdown of the World War II Memorial or the stopping of death benefits, part of me sees a bunch of Captain Renault moments (I’m shocked, SHOCKED…) but then I realize that many of these same “SHOCKED” Members of Congress are truly clueless as to how the Federal government is involved in day-to-day life in the US. They are truly clueless as to ALL the ways money is spent. If they actually were capable of thinking through the ramifications of their actions, they would have realized from the beginning how bad the optics are that they would receive their salaries during the shutdown while 800K federal employees go without. They can act like only Congress has to pay for a ‘nice house‘ or are the only ones “who need the pay check.”

I am still trying to figure out why the House gym is considered “essential.” But they are making one sacrifice – they are re-using their dirty towels!

I guess it is possible to be both clueless AND disingenuous.

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor
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Now isn’t that con-vee-nient?

7:17 am in Economy, Government, Jobs, Politics, Unemployment by dakine01

Oops.

So much for the monthly Jobs Report. One of the effects of the government shutdown (no Fox News, it is NOT a “slimdown“) is no monthly Jobs Report from the Bureau of Labor Statistics. The BLS web site has a “Special Notice”:

This website is currently not being updated due to the suspension of Federal government services. The last update to the site was Monday, September 30. During the shutdown period BLS will not collect data, issue reports, or respond to public inquiries. Updates to the site will start again when the Federal government resumes operations. Revised schedules will be issued as they become available.

Bureau of Labor Statistics

Bureau of Labor Statistics

Quite convenient for those members of Congress who deem most of us as not worthy of worrying about, yet manage to whine about how they need their pay check to get by – as if the 800K federal employees don’t need theirs!

ADP did release their monthly report on private sector jobs on Wednesday, showing an increase of 166K in the private sector (and of course economists surprised as the number was lower than “expected”). The Wall St Journal looked at the numbers in a bit of detail (you can reach behind the WSJ Paywall by Googling the article title “U.S. Businesses Add 166,000 Jobs, ADP Report Shows”). The numbers that jumped out at me are:

Service-sector jobs increased by 147,000 last month, while the factory sector added a slim 1,000 new positions. Financial services cut 4,000 jobs.

Despite September’s gain, job growth is weakening. Over the three months through September, the economy added an average of 162,000 private jobs per month, down from 220,000 at the start of the year, according to ADP.

Service sector jobs increase by 147K and manufacturing increases by 1K. It’s a McJobs economy!

Business Insider offers us a listing of “what we know” even without the BLS figures. Of course, they base this to a large extent on “market economists’ expectations” (see above link to previous blog post about “Economists surprised”).

Bloomberg tells us that economists will just talk about football:

The absence of jobs data leaves economists and their investor clients without the month’s most important numbers on which to place bets, ranging from friendly office pools to million-dollar wagers on the health of the world’s largest economy.

Meanwhile, Reuters tells us “Workers and employers face off at U.S. Supreme Court:”

(Reuters) – Workplace disputes pepper the docket of cases the U.S. Supreme Court will take up during a nine-month term starting on Monday, with the justices having delivered a string of victories to businesses and employers in their last term.

Organized labor will feature in two of the cases. In one, an employee seeks to limit the power of public-sector unions to collect dues. In the other, an employee aims to limit the ability of private-sector unions to sign up members.

It would constitute a significant blow to the labor movement were the court, split 5-4 between Republican and Democratic presidential appointees, to rule against the unions in both cases, legal experts say.

Since the composition of the SCOTUS has not changed in the past few months, I am not going to hold my breath on workers getting any breaks from this court. In June, Businessweek declared the current court as Corporate America’s Employees of the Month. It is not a stretch, it is not a difficult prediction to say more 5 – 4 decisions, more rulings in favor of our corporate overlords are coming in the next few months.

I bet Lloyd Blankfein will go to sleep at night dreaming of the wage slaves he can continue to abuse.

And because I can:

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It’s “Talk like a Pirate Day” — but which set of Pirates?

9:47 am in Economy by dakine01

Today (Thursday, September 19) is International Talk Like A Pirate Day so here is my obligatory “Yaaarrrr.” Or maybe it should be an “Arrrggghhh!”

Pirate Statue

Pirate Statue

Yeah, I think I will go with the “Arrrggghhh!” After all, that is my normal response when I read the daily idiocies in the TradMed like the articles on Sunday that inspired this post. I could probably link to most of the posts I have written these last few years as most of them are in response to some level of stoopid provided by the TradMed.

But the days of pirates sailing the Spanish Main are long in the past. No more sacking of Cartagena. No, today’s “pirates” wear business suits and do their sailing on Wall St. Just today, we have reports that JP Morgan Chase is paying a $920M fine for the “London Whale Fail” trading losses. Amazingly enough, JP Morgan is even admitting “fault”:

WASHINGTON JPMorgan Chase & Co. (JPM) is paying $920 million in penalties and admitting wrongdoing over a $6 billion trading loss last year that tarnished the bank’s reputation.

Regulators said Thursday that the largest U.S. bank failed to properly supervise traders in its London operation, allowing them to assign inflated values to trades and cover up losses as they ballooned. Two of the traders are facing criminal charges of falsifying records to hide the losses.

Of course, JP Morgan had reported profits for their second quarter of the year as $6.5B so a $920M fine is still just a cost of doing business tax and nothing more.

Reuters is reporting that Wells Fargo is cutting 1,800 jobs in their mortgage business:

(Reuters) – Wells Fargo & Co (WFC.N), the largest U.S. mortgage lender, said on Thursday that it will cut 1,800 jobs in its home loan business due to lower demand for refinancing amid higher interest rates.

The fourth-largest U.S. bank provided a 60-day notice on Wednesday to employees whose jobs were to be eliminated, the bank said in a statement.

Chief Financial Officer Tim Sloan told investors at a conference on September 9 that the San Francisco bank had laid off 3,000 employees in its mortgage business so far in the third quarter. Sloan also said Wells Fargo expected to make $80 billion in home loans in the third quarter, nearly 30 percent below its second-quarter figure.

I wonder how this will impact the on-going problems Wells Fargo and other banks have in mortgage servicing. My WAG is it will not be pretty but I would also take a WAG that paying fines and “admitting no wrongdoing” is still cheaper than actually making things operate correctly.

It is not just the banksters that make me say “Arrrggghhh” though. The AP is reporting that a federal judge in New Orleans has accepted a guilty plea for destroying evidence after the BP oil spill in 2010. Of course, the corporate person known as Halliburton really won’t feel much pain from this plea – a $200K fine and a $55M donation to the National Fish and Wildlife Foundation (the donation is not a condition of the guilty plea.) Halliburton profits for the quarter that ended 30 June were $679M so $55.2M in fines and donations equals a cost of doing business and nothing more.

Today’s pirates don’t have to snarl and say “Arrrggghhh” or “Avast ye Mateys.” They do not need to carry cutlasses and sail the Spanish Main. They (mostly) walk amongst us wearing business suits. They sit in their board rooms, plot the ways to increase their profits, often on the edge of legality (well, they are pirates after all so those legal niceties are mostly a formality anyway), and leave the rest of us to clean up their messes while they sail their yachts away to the Caribbean.

Arrrggghhh! That is so not snark, believe me.

And because I can:

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August 2013 Jobs Report: “Good” News That Isn’t

11:27 am in Economy, Jobs, Unemployment by dakine01

Well the August Jobs Reports are in, and, as usual, the numbers were not as expected. From Reuters:

Unemployment Report

Unemployment Report

U.S. employers hired fewer workers than expected in August and the jobless rate hit a 4-1/2 year low as Americans gave up the search for work, complicating the Federal Reserve’s decision on whether to scale back its massive monetary stimulus this month.

Nonfarm payrolls increased by 169,000 jobs last month, the Labor Department said on Friday, falling short of the 180,000 Wall Street had expected and adding to signs that economic growth may have slowed a bit in the third quarter.

CNN points out that the growth for June and July was revised downwards by 74K jobs but they also highlighted (my bold):

Meanwhile, the unemployment rate fell to 7.3%, but the decline came for the wrong reasons, as 312,000 people dropped out of the labor force. Only 63.2% of Americans now participate in the labor force — meaning they have a job or are looking for one. That’s the lowest rate since August 1978.

Reuters also notes the drop in participation in the workforce in a sidebar article here:

The share of Americans aged 25 to 54 who had jobs or were looking for work dipped to 81 percent in August, the lowest level since 1984, a time when fewer women were in the workforce. In another worrisome sign, the share of these prime-age workers who actually had jobs has stagnated at around 76 percent since early last year, well below its 2003-2007 average of around 79 percent.

Most of the reports in TradMed outlets have also commented on the impact of the (lack of) jobs reports on the Federal Reserve “stimulus” (from McClatchy):

The Fed has been purchasing, at a pace of $85 billion a month, government and mortgage bonds in a bid to drive down lending rates in the economy and force risk taking by investors. They must seek better returns than they have been getting on bonds, thus juicing the stock market and commodities such as crude oil and a range of farm products. Fed Chairman Ben Bernanke, who is concluding his term, wants to begin weaning the economy off of this support before his successor takes over.

Of course, this “stimulus” has not really helped the millions of long term un and underemployed, even though a large part of the Federal Reserve “mission” is maximizing employment.

The stock market continues to show its disconnect with most of the economy as it has gone up in response to the jobs report number (via Bloomberg):

U.S. stocks rose to a two-week high as slower-than-forecast jobs growth eased concern about reductions in Federal Reserve stimulus, overshadowing an escalation in tension between America and Russia over Syria.

So, because the Fed may not be able to stop its “stimulus” (read: easy money for the banksters and Wall St), stocks are going up in celebration. Yeah, that makes sense. After all, the casinos always like to show their appreciation for the marks customers.

Bloomberg has an opinion piece up by a Justin Wolfers, who says to concentrate on the revisions. Of course, he also seems to think public sector jobs are not “real” jobs when it comes to the economy:

There is one further detail worth emphasizing. While there were 74,000 jobs revised away this month, more than half were in the public sector, suggesting that we shouldn’t be too hasty in marking down expectations of ongoing private-sector employment growth.

Now, I am one of those who refuses to give up my search for full time employment, preferably in my chosen field of Software Quality Assurance. I am a stubborn SoB and even when I keep receiving discouraging results, I will not fold. I’m sure many people would claim that I am being unrealistic in my desires to find work in my field. But am I any more unrealistic than the CEO of Morgan Stanley who declares:

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Thoughts on Labor Day 2013

3:30 pm in Economy, Jobs, Media, Politics by dakine01

Labor Day Parade

Labor Day Parade, Peoria, IL

Well, well, well. As I look back the last couple of years, it seems I have established a small tradition of writing something about Labor Day. This is the post I wrote in 2011 and this is last year’s post. As I read my words from the last two years, I recognize that very little has changed in some ways yet in others, we have seen some massive changes.

Labor Day 2011 was just before the start of Occupy Wall St. Today, two years later, we are seeing fast food and retail workers staging strikes for higher wages. While many people are able to ignore the demands of these workers, there is coverage in the TradMed, albeit at the local level. This is a positive thing, even as so much of the news cycles are taken up by the rush to war with Syria (and it is a rush to war, no matter how the words and proposed actions may be caveated as “limited.”

Yesterday (Saturday, August 31) the Firedoglake Book Salon was Coming Up Short: Working-Class Adulthood in an Age of Uncertainty, the plight of young adults from working class families. NBC News has been doing a series titled In Plain Sight: Poverty In America which has been covering all aspects of living poor in today’s United States. Yet with all the discussion in some parts of the TradMed on working poor (and as I first wrote a couple of years ago, trying to live on minimum wage is at best an exercise in treading water), we are more likely to find articles like this one from ABC News yesterday with the title Top Labor Day 2013 ‘Made in America’ Sales or this one from International Business Times titled Labor Day Sales 2013: 27 Stores To Score The Best Deals And Discounts This Weekend. The Denver Post today (Sunday, September 1) had this article titled New culture of work, both virtual and traditional, on Labor Day 2013 while the Washington Post had this blog post on the failure of schools to teach anything about the labor movement:

Major textbooks, among other things, often represent labor organizing as inherently violence, and virtually ignore the role organized labor played in winning broad social protections such as child labor laws, Social Security and Medicare.

Scholars say this [is] a result of the unfavorable view the business community and some politicians hold towards unions, an attitude that appears in textbooks that are approved by states in processes that are very political.

So as you sit down to your barbecue or grilled whatever this Labor Day; as you seek out the best deals at the store for whatever Labor Day sales this weekend; remember that the working poor, the laborers if you will, are probably not getting a paid day off. Or maybe they are among the long term un and underemployed who probably are not sitting down to a nice cook out meal to celebrate the “end of summer.”

When the politicians make their Labor Day statements, remember their actions towards labor rather than their words.

And because I can:

Cross posted from Just A Small Town Country Boy by Richard Taylor
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“I have a Dream…”

12:05 pm in Economy, Politics, Unemployment by dakine01

Fifty years ago today, August 28, 1963, I was an eleven year old boy. I do not recall if we had started back to school on this date but may well have. As it was, I was no more than a week or so maximum away from being a sixth grader.

IMG_8526

Location of Dr King’s speech, August 28, 1963

I do not have any memories of Dr King’s speech (pdf) or the March on Washington. I was vaguely aware of the actions of Bull Connor in Birmingham, AL but the church bombing in Birmingham that killed the four little girls was still a couple of weeks away and we were still a year away from Freedom Summer. Little of this would have penetrated or did penetrate my consciousness in small town Kentucky.

And then.

And then.

Fast forward to the fall of 1970 and my freshman year at Western Kentucky University. At the time, Western had a required, one credit hour course, “Freshman Orientation,” that met for one hour a week for the entire first semester of the freshman year. I do not remember the name of the professor who taught my class of about forty freshmen. I could probably find his name on my transcripts if I knew where they were but it is not important. What is important is that one day, a month or so into the semester, he walked into the classroom, turned on the tape recorder sitting on the desk in the front and walked out. It was a tape of Dr. King’s speech and played entirely. Afterwards, the professor returned to the room and we spent the rest of the hour discussing the speech from the distance of seven tumultuous years.

Has Dr. King’s dream been fulfilled, fifty years later? Not hardly. And it is not just his desire for racial justice that is still lacking (as Mr Pierce points out, this has not been achieved no matter the ravings of people such as those at The National Review.) And contrary to the desires of one Jonah Goldberg, Dr King’s message was very much about economic justice as well as racial justice and equality. Dr. King was assassinated as he was in Memphis to support the striking Memphis Sanitation workers. Dr. King, along with the Southern Christian Leadership Conference, was the organizer of the Poor People’s Campaign. From the Poor People’s Campaign history:

The Poor People’s Campaign did not focus on just poor black people but addressed all poor people. Martin Luther King jr. labeled the Poor People’s Campaign the “second phase,” of the civil rights struggle – setting goals such as gathering activists to lobby Congress for an “Economic Bill of Rights,” Dr. King also saw a crying need to confront a Congress that had demonstrated its “hostility to the poor ” – appropriating “military funds with alacrity and generosity,” but providing “poverty funds with miserliness.”

Under the “economic bill of rights” the Poor People’s Campaign asked for the federal government to prioritize helping the poor with an antipoverty package that included housing and a guaranteed annual income for all Americans.

My bold

Yesterday’s New York Times had an opinion piece from Joseph Stiglitz where Stiglitz describes how Dr King’s speech has impacted his life in economics:

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