Strumming a bitter-sweet blues song for Labor Day and us all
My Labor Day Lament could sound like a blues song from Muddy Waters or Etta James. It’s deep and rich and has some sweetness mixed in with all the sorrow.
The news for workers is bitter-sweet and for the unemployed and the under-employed it is as dreary as a February day in Detroit, where the unemployment rate was 15.2 percent in July
Consider these blue notes:
- -The recession and job cuts have cut a wide swath through America. More than half of workers have a family member who’s lost a job, including one in eight who say someone in their immediate family has been unemployed. That data comes from a new Rutgers University survey of 802 workers.
- For what really qualifies as a double-dip recession, one-third of current job seekers say an immediate family member has also been unemployed in the last three years, the Rutgers poll shows.
- The “99ers” are not such an elite group of Americans unemployed for 99 weeks or longer. That’s 1.3/1.4 CK million people who have spent two solid years of life without a regular paycheck or work friends. The New York Times wrote a poignant piece about 99ers (and I hope to find a link to it and add it soon).
- The U.S. jobless rate is not coming down and companies are hiring sparsely if at all. One third of U.S. metropolitan areas are stuck with jobless rates of 10 percent or higher, and 17 are really bad with rates at or above 15 percent, the Bureau of Labor Statistics reported. California, once the golden state, now has 12 cities with very high unemployment. Three cities in Michigan are at or near 15 percent. Even Ann Arbor, the city where I live and one viewed as thriving and adding jobs, has ahas a jobless rate of 10.0 percent in July.
- When the poverty statistics come out later this month, they are likely to show more Americans at or on the brink of desperation. More than half of workers surveyed for Rutgers rate their finances as “only fair” or poor and it’s 90 percent for unemployed.
- Workers are seeing decelerating wage growth in the last two years, which is hurting family incomes and the economic recovery, according to report from the Economic Policy Institute, a liberal think tank. The EPI also found that four of the five fastest growing jobs between 2006 and 2009 paid between $8 and $14 an hour – well below the median U.S. worker’s wage of $15.95.
- Almost two-thirds of workers in a Spherion Staffing survey say they feel less secure about their job, and more than one-third feel more negative about their situation since the recession began. Perhaps that negativity comes from a bigger workload: Half say they’ve added responsibilities thanks to a coworker’s layoff, and of course they aren’t paid any more for it.
And what gives this Labor Day weekend some sweetness for workers? Much of it is far less quantifiable than the blues I was just singing. Many more people seem attuned to the plight of others and willing to help them with a lead on work or a few dollars for a meal. And Friday’s unemployment report does provide some glimmers of hope, as well as many worrisome signs. Factory overtime is rising and the average workweek for “nonsupervisory employees” in companies inched up too.
Hiring will continue slowly in September, with fewer layoffs, the Society for Human Resource Management reports. SHRM also reports more openings for both salaried and hourly jobs – and a few HR managers say recruiting is getting difficult, at least for a few jobs.
Though hiring was tepid at best, some sectors did add jobs in August, according to the Labor Department report, including some that surprised me:
- Restaurants and bars hired 12,200 people nationwide, perhaps to staff up for the fall football and sports season.
- Temporary help agencies continued to add jobs, about 17,000 new ones last month and close to 400,000 in recent months.
- In the professional category, employers added 10,300 administrative and support stafffers and several thousand accountants and bookkeepers.
- Construction employment grew, buoyed by heavy construction (all those orange barrels on the highways are good for something) and specialty trades.
- Membership associations and organizations added 5,200 jobs and educational employers added almost 5,000 jobs.
Another encouraging sign: The Labor Department’s revised the job losses for June and July. Both numbers are still negative, but the declines shrunk considerably (by 50,000 or more each month).
EPI economist Heidi Shierholz called the BLS report “positive but underperforming” and suggested the government needs to step in with “bold action to create jobs and put America back to work.” I’m no politician, nor a blues singer either but I know that we’ve got a world of hurt out there, with 6.2 million workers who’ve been jobless for half a year or more.
And so we need to encourage and help the jobless – and if we have the means, take action. Many of us could hire people to rake our leaves or renovate a bathroom; tutor our children or staff up our small businesses. We also could press politicans for more help for the worst cities and more aid for long-term jobless. Then perhaps we could turn America’s Labor Day Lament into a more upbeat song.
More information:
Bureau of Labor Statistics U.S. joblesss report and metropolitan area reports http://www.bls.gov/news.release/empsit.nr0.htm http://www.bls.gov/news.release/metro.nr0.htm
The Economic Policy Institute’s report called Recession Hits Workers’ Paychecks: Wage growth has collapsed, is available online http://bit.ly/c3WI24
