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Vol. 72/No. 37      September 22, 2008

 
‘Official’ unemployment jumps to 6.1 percent
 
BY SETH GALINSKY  
The official unemployment rate in the United States rose to 6.1 percent in August, the highest in five years. The 0.4 percent one-month jump may sound small as a statistic, but translated into human cost it means a total of 9.4 million unemployed, 2.2 million more than a year ago. Most of the increase was in the last four months alone.

If you add those not included because Bureau of Labor Statistics (BLS) doublespeak excludes the “marginally attached” from the official count—the real figure rises to 11 million unemployed workers.

In addition, 5.7 million people work part time, many of whom the BLS says “would like to work full time.” The number of workers holding two or more jobs increased by 298,000 in August, to 8.1 million people.

While the “experts” debate whether or not the United States is in a recession, the BLS announced that real wages for workers officially dropped 1.3 percent. Like unemployment statistics, the inflation rate used to calculate the amount is manipulated to grossly underestimate the price rises working people pay.

Blacks are the hardest hit with a jump from 9.7 percent to 10.6 percent unemployed in August, almost a full percentage point. Among Latinos unemployment rose from 7.4 percent to 8 percent. Last hired, first fired continues to be the reality for those most oppressed by the workings of capitalism.

Unlike in May, when a big part of the unemployment rise was among teenagers, this month youth unemployment stayed at about 18.9 percent, but jumped among adults.

The latest figures are not final. Figures for June and July were revised upwards bringing job losses to more than 600,000 so far this year.

“What is worrisome is that more full-time workers have been laid off, more people are being forced to work part time who want to work full time and more people are trying to get multiple jobs to make ends meet,” admitted Bruce Kasman, chief economist of J.P. Morgan Chase.

Both Democrat Barack Obama and Republican John McCain seized on the job losses to promote their election campaigns. Obama said he was for $65 billion in additional tax rebates and $50 billion for state and local governments and “infrastructure.” McCain is not opposed to further tax rebates, but said the key question is tax cuts.

The $160 billion tax rebates issued early this year had little impact on economic growth or unemployment.

The Obama campaign blamed the policies of President George Bush for the steep job losses and implied that a McCain victory would mean more of the same. But McCain also distanced himself from Bush. “Some Americans have been left behind in the changing economy, and it often seems your government hasn’t even noticed,” he said.

Socialist Workers Party presidential candidate Róger Calero said in an interview that “both Obama and McCain want to blame this on policies of the Bush administration.”

“But the problem is that the owners of big business shut down plants and toss out hundreds of thousands of workers,” Calero said. “It’s not because we don’t need housing, public transportation, schools, and health care, but because the owners are not in business to make things workers need. All they care about is profits.

“If they think they are not making high enough profits they lay off workers regardless of the consequences,” he continued.

The socialist candidate noted the disproportionate impact of unemployment on Blacks, Latinos, and women. “That’s why we need affirmative action with quotas to fight against the impact of ‘last hired, first fired.’”

“The rebate stimulus plan is a bribe to get our silence,” Calero said. “What we need is government protection. Every time the cost of living goes up, wages should go up automatically.

“We need federal legislation to cut the workweek with no cut in pay along with a public works program that can put millions to work. That would include building public housing in Chicago, rebuilding New Orleans, and providing aid to countries in the Caribbean that have been devastated by the hurricanes.”
 
 
Related articles:
U.S. gov’t takes over two mortgage giants
Guarantees bondholders’ investments  
 
 
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