Relentlessly High Youth Unemployment is a 'Global Time Bomb'

Last month's job report shows 16 percent of young adults who consistently seek full-time employment are unable to find work. The report shows that a high number of well-educated, trained, and productive youths are among those getting denied the opportunity for a better future. The Guardian reports:

High youth unemployment causes immediate and long-term economic damage. It means young adults take longer to get married, buy homes and begin families. In the long run, it means slower economic growth and lower tax receipts. Countries with prolonged high levels of youth unemployment risk social instability.

Read more here.

U.S. Unemployment Claims at Highest Level in 6 Weeks

A week after reaching a five-year low, Americans seeking unemployment benefits rose by 32,000. This is the highest level in six weeks. Although the job market has improved in the lat six months, unemployment applications continue to fluctuate each week. The Associated Press reports:

"The underlying story in jobless claims continues to be one of gradual improvement," said Julia Coronado, an economist at BNP Paribas. Coronado said the small rise in applications "highlight(s) the need to take volatile weekly readings with a grain of salt."

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BREAKING: Jobless Rate Falls

The U.S. jobless rate fell to 7.8 percent in September, the lowest since January 2009, President Obama’s first month in office. The Associated Press reports:

“The U.S. unemployment rate fell to 7.8 percent last month, dropping below 8 percent for the first time in nearly four years. The rate declined because more people found work, a trend that could have an impact on undecided voters in the final month before the presidential election.

“The Labor Department said Friday that employers added 114,000 jobs in September. The economy also created 86,000 more jobs in July and August than first estimated. Wages rose in September and more people started looking for work.”

Willing to Work, Where Are the Jobs?

The Bureau of Labor Statistics released its monthly employment report for August this morning. In the numbers that make the headlines, 96,000 jobs were added and the unemployment rate fell to 8.1 percent – 12.5 million people. The numbers behind the headlines are mixed.

Across the major demographic groups, the unemployment rates for adult men (7.6 percent), adult women (7.3 percent), teenagers (24.6 percent), whites (7.2 percent), blacks (14.1 percent), and Hispanics (10.2 percent) showed little or no change. In the macro picture, 5 million people, 40 percent of those unemployed, are “long-term unemployed” (those jobless for 27 weeks or more.) 8 million people who are considered employed are referred to as “involuntary part-time workers,” meaning they are working part time because their hours have been cut or they are can’t find a full-time job.

But it’s the people who aren’t even counted that give me pause. 2.6 million people are considered “marginally attached to the labor force,” meaning they want work, have looked for a job sometime in the past year, but didn’t look during August. So, they don’t count. Of these, 844,000 are “discouraged workers,” meaning they aren’t looking for work because they believe there are no jobs available for them. They also don’t count.

There is much this country needs and there are people available and willing to do the job. What is lacking is the will to put them to work.  

Poll: No End in Sight for Economic Woes, High Unemployment

The Associated Press reports:

"A majority of economists in the latest Associated Press Economy Survey expect the national unemployment rate to stay above 6 percent — the upper bounds of what's considered healthy — for at least four more years. If the economists are correct, the job market will still be unhealthy seven years after the Great Recession officially ended in June 2009. That would be the longest stretch of high unemployment since the end of World War II.

The election isn't going to be a miracle cure for the unemployment rate — that's for sure," says Sean Snaith, an economics professor at the University of Central Florida. He thinks unemployment, which is 8.2 percent now, won't drop back to 6 percent until after 2016.
Economists consider a "normal" level to be between 5 percent and 6 percent.
The economists surveyed by the AP foresee an unemployment rate of 8 percent on Election Day. That would be the highest rate any postwar president running for re-election has faced."
Learn more here


Faithful Alternatives to the Sequester

Today the Interreligious Working Group on Domestic Human Needs (DHN) presented a forum for congressional representatives to talk about a more faithful response to the pending sequester this upcoming January.

Sequestration as we know it was meant to be a last resort – if Congress could not agree on a budget, then programs would be cut, or sequestered, across the board. The problem with the current sequestration agreement is that it does not protect programs that affect the poor, uninsured, and unemployed.