| Unemployment in the US stood at 9.6 percent last | | | | his frustrating experience of trying for six months |
| month. That was considerably higher than | | | | to hire workers. He complained that potential |
| expected when the fledgling Obama administration | | | | employees come in for interviews only to have |
| economic team projected in January 2009 that | | | | him sign off on the required state form indicating |
| unemployment would go no higher than 8 percent. | | | | that they had applied for work. |
| The number of underemployed in the US -- | | | | Congress has extended unemployment benefits |
| defined as those unemployed plus those working | | | | to the long-term unemployed for up to 99 weeks |
| part-time but wanting full-time work -- is even | | | | in some states, and there is legislation currently |
| higher. Gallup polling estimates of | | | | before Congress that would extend |
| underemployment have ranged between 18 and | | | | unemployment even longer, to 119 weeks -- |
| 20 percent throughout 2010. | | | | more than 2 years. At least in some locations, |
| With private employment increasing --albeit tepidly | | | | could long-term unemployment benefits be |
| -- through most of this year, the picture seems | | | | contributing to the problem of the long-term |
| finally to be improving. Slowly. The question I'm | | | | unemployed? Perhaps. |
| struggling with today is what about the record | | | | The solution to unemployment is a complex one. |
| number of the long-term unemployed? Of an | | | | High unemployment and tight credit reduce the |
| estimated 15 million unemployed in the US, an | | | | demand for goods and services. And with demand |
| estimated 7 million have been unemployed for | | | | for many goods and services down, employers |
| more than six months, nearly 5 million for more | | | | are hesitant to invest capital and hire new |
| than a year, and more than 1 million for two | | | | workers. Legislation passed or on track for |
| years. Long-term unemployment is now at the | | | | passage by the Congress includes unemployment |
| highest levels since the government started | | | | benefits extensions in states with high |
| keeping unemployment statistics in 1948. | | | | unemployment, small business loans and improved |
| The problem of long-term unemployment is made | | | | small business access to capital, and investment |
| much worse because of the reality that many | | | | tax credits that should promote small business |
| good jobs are simply not coming back, and | | | | investments in plant and equipment. Ben |
| declines in home prices make it difficult to move | | | | Bernanke, chairman of the Federal Reserve, |
| to where the jobs are for many of the | | | | noted in a July 2010 speech that over the past |
| unemployed. Add to that, crushing consumer debt | | | | two years about $40 billion worth of capital has |
| and the flight of small business capital, and you | | | | been withdrawn from US small businesses, and |
| have a veritable "perfect storm" that has resulted | | | | fixing the problem should be "front and center |
| in chronic, long-term joblessness. | | | | among our current policy challenges." |
| I just watched a CNN report that included an | | | | Unfortunately, because of the severity of the |
| intriguing interview with an entrepreneur, a paper | | | | recession that officially began in 2007, and |
| tube manufacturer, in Wayne, NJ. He was asked | | | | accelerated through 2008 and into 2009, the |
| what the government could do to help small | | | | bottom line is that economic recovery proceeds |
| business expand operations and hire more | | | | at a pace that will only very slowly help put laid |
| workers. His response was that they could limit | | | | off workers back in jobs. It's just going to take |
| the number of unemployment benefit extensions | | | | time. |
| available to the unemployed and then recounted | | | | |