Signs of economic recovery continue to be elusive. Federal Reserve Chairman Ben Bernanke has predicted that the recession will end later this year, and the consensus among economists seems to be that a sluggish recovery will be underway by the end of the year.
But the unemployment data for June, released last week, provided an unexpected jolt of bad news. Job losses continue to exceed forecasts. The Labor Department reported the unemployment rate at 9.5 percent ”“ a 26-year high.
After slight improvement in the job market this spring, the June numbers are a disappointing setback. The news brought gloom to Wall Street and world markets, and to everyone in the workforce who is paying attention.
Unemployment is not the only measure of the recession, but a rising index is a direct threat to our economic well-being. The numbers are a reminder, President Barack Obama said last week, that anyone could be next in line for a pink slip, and that new jobs are hard to find.
The Labor Department counted 467,000 jobs trimmed from U.S. payrolls last month. According to a summary by The Associated Press, there are now 131.7 million jobs in the United States, fewer than existed nine years ago. Overall, 14.7 million people are unemployed, the most ever in records dating to 1948. The last time the unemployment rate hit 9.5 percent was in August, 1983.
Employers are also cutting wages and hours, as well as jobs. It’s a grim season for the working class..
It’s small consolation to consider that the situation would be even more dire without the stimulus investment ”“ $787 billion that is just now beginning to save jobs and generate new ones. Once the recovery is fully underway, we will be in a better position to judge the value of the American Recovery and Reinvestment Act.
Most Republicans voted against the legislation (Sen. Susan Collins and Sen. Olympia Snowe supported it), so it is not surprising to see GOP leaders rushing to describe it as a failure.
“Where are the jobs?” House Minority Leader John Boehner asked after the Labor Department report was issued last week. These days, even Republican House leaders are concerned about the troubles facing working men and women.
Republicans are right to be concerned about the state of our economy. Unfortunately, the GOP has little to contribute beyond criticism of Democratic proposals.
The party’s pessimism about the economy puts it in a difficult position. It should be looking for evidence that there is light at the end of the tunnel, and that employers will soon be hiring and banks will soon be lending.
Otherwise, how can it oppose the inevitable calls for even more stimulus spending.
— Questions? Comments? Contact Kristen Schulze Muszynski or Nick Cowenhoven at 282-1535 or kristenm@journaltribune.com or nickc@journaltribune.com.
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