9.1% Unemployment, Disposable Workers And Where Are Job Creators

One Year Unemployed Anniversary Let Them Eat Cake

Well the jobless numbers are in for May 2011 and the rate increased to 9.1% . When will the job creators use their continued tax breaks to hire permanent employees because there is a growing trend afoot in the United States and it is the age of disposable workers. Disposable contract workers do little to get the economy back on a solid footing.

There is a constant refrain of it is not good to raise taxes on those that would be creating jobs. We are waiting for the trickle down; the Bush tax cuts for the top income levels have been in place for years and should have trickled down in the form of permanent jobs by now. There is a new and not often talked about trend out there in the job market, disposable workers. This group of disposable workers is not the gathered on the roadside ready to do a short term construction job, but are computer programmers, project managers and recruiters. Just about every career disciple you can think of from engineers to architects is often hired on a contract basis.

Some contract workers find themselves working on 3, 6, 12 or 18 month contracts and often without medical benefits. Some job seeking network groups will see the same people cycle through 3 or 4 times after their contracts end or even before the terms are up. The reason companies are doing this is because they don’t have to count these people as part of their workforce, provide medical benefits or contribute to retirement plans. Often contract workers actually work for another firm and their paycheck comes from someone other than their work location company.  

The catch 22 for a contract worker is they answer to the powers that be of the contracting firm and the feedback from that company can get them dismissed for almost any reason. Since the company that pays the contracted employee is basically just supplying labor there is very little push back when someone is said not to be suitable for a particular task.

Can someone with a 3, 6, 12 or 18 month job outlook purchase a new car or home that has a 5   to 30-year loan commitment? It is not likely that a contract worker will be able to or want to enter into a long term financial commitment. The continued uncertainty caused by high unemployment, temporary employment and underemployment will continue until job creators start hiring permanent workers.

People with permanent jobs think, act and spent on a long term basis. An article by Gallup places the combined underemployment and unemployed rate at 19.2%. That means that almost 20% of the workforce is not participating in the economy on a normal basis. A video produced by CNN titled Barely Getting By On ‘underemployment’ shows the effects of the issue.  

So exactly what is going on here? The recession allow companies to clear the decks and now many bring in professionals to work on a project basis just like a fast food joints brings in extra help for the lunch rush and then sends them home. The extra profit from this type of labor management goes to bonuses, acquisitions or international expansion. From a long term standpoint this is a worst case scenario because it creates an environment of zero loyalty and is a race to the bottom because the employer and employed are engaged in short term behavior. The employer is planning for profit and the employee is planning for survival.

Blackout – Black Unemployment Rate Rises As Overall Rate Falls

 Empty - Ghosts of The Middle Class

Sometimes statistics speak louder than shouts from rooftops. Cheers went up as the March 2011 jobless rate fell from 8.9% to 8.8%. Hold the celebrations unemployment rate for black increased from 15.3% to 15.5%, almost twice the 7.9% of whites.

What is going on in the face of celebrations surrounding the number of jobs being created and an unemployment rate that has dropped to 8.8% from 8.9% the month before, blacks seemed to be left off the party invitation list. Hispanics have little cause to be raising their glasses for a toast as well. The unemployment rate for Hispanics fell from 11.3% to 11.1%, but it is the unemployment rate among blacks that is totally disconnected and going against the tide.

The Bureau of Labor Statistics report lists the rates for blacks, whites, Hispanics and all other groups in the United States. Even inside the black community the pain is unevenly spread. Black women had a drop in their unemployment rate from 13% to 12.5% while black men went from 16.2% to 16.8%.  Let’s not gloss over the gap between black men and black women with a 4.3% more of an unemployment percentage among black men.

Let’s get away from percentages and get into how many people this represents. The tables state that 7,923,000 black women are employed compared to 6,758,000 black men. That means that 1,165,000 more black women have jobs than black men. On the flip side the number of unemployed black women is listed at 1,127,000 versus 1,361,000 black men. There is a quirk in the numbers that show fewer black women have jobs than before. The number of black women that were employed in February was 7,993,000 compared to 7,923,000 which are 70,000 fewer jobs and the jobless rate went down for black women. You may ask how fewer working black women mean a decreased in the unemployment rate, it is because so many gave up looking for work and were not counted in the numbers.

The participation rate for black women went from 63.1% to 62.1% and that caused the rate to decrease even though 70,000 fewer black women had jobs. Black men actually had an increase in the number holding jobs from 6,745,000 to 6,758,000 which is 13,000 more jobs and the jobless rate among black men went up because the participation rate went up from 68.2% to 68.7%. Simply speaking, more black men looked for jobs and the jobless rate went up due to math.

So, what is going on? Blacks don’t seem to be included in this slow recovery and what does it mean for the long term future of the black community. The unemployment rates reported are always lower than reality. What is the rate if part-time and underemployment are factored in. Where are the crisis level emergency outcries, because as we speak, decades of economic gains in the black community are being destroyed?

GAS PRICE INCREASES HITS THE UNITED STATES

By Danny Pollard February USA- Nothing reminds us of how dependent we are on oil from Northern African and the Middle East more than sharp increases in the price of gasoline at our local service station. Events that are occurring halfway around the world have a direct connection to our pocket books in the United States and it hurts.

Unrest in Libya as the population there has taken a cue from citizens in Egypt and are moving to oust their leader of 40 years, Muammar Abu Minyar al-Gaddafi. Although we are far removed from the actual unrest we see it when driving by the signs at the gas pump as some will increase from the time we drive by on the way out from home and come by on the way back. 

An article titled "Gas prices keep rising in Dallas-Fort Worth, with no relief in sight" by Elena Harding, Jessica L. Huseman and Amber Bel February 23, 2011 and published on the Dallas News .com website detail the rising gas price issue in Dallas-Fort Worth, Texas. That article was a few days ago and prices are even higher now. 

Effect Of Fuel Prices On Economic Recovery

As gas prices increase, the amount of money available to spend on other things will decrease and that means the economic recovery will slow down. If gas prices hit $5 dollars a gallon it will be like throwing cold water on other spending. Not only will the price of filling personal gas tanks go up, but the price of fueling delivery trucks will increase also. Increased cost to deliver everything from food to tires will be passed on to consumers. We must hope that stability returns to those troubled areas that we depend on to keep our country moving.

Time To Break Our Foreign Oil Addiction

Will this become just another drill in complaining about the price of gas or will this be the opportunity to begin to turn the page on our oil addiction. Technology has zoomed forward in many areas such as computers and cell phones, but automobiles are using the same engine and fuel technology as 100 years ago.