January, 06 2012, 10:50am EDT
Statement: Chad Stone, Chief Economist, on the December Employment Report
Today's employment report shows glimmers of hope for the job market, most notably the addition of 200,000 payroll jobs in December. Yet a strong jobs recovery remains elusive. The overall jobs deficit remains large, the labor force shrank for the second straight month, and the proportion of people aged 16 and over who have a job remains depressed (see chart). Jobs are still hard to find, especially for the long-term unemployed.
WASHINGTON
Today's employment report shows glimmers of hope for the job market, most notably the addition of 200,000 payroll jobs in December. Yet a strong jobs recovery remains elusive. The overall jobs deficit remains large, the labor force shrank for the second straight month, and the proportion of people aged 16 and over who have a job remains depressed (see chart). Jobs are still hard to find, especially for the long-term unemployed.
The job market is nowhere near healthy enough yet to justify a sharp curtailment of federal emergency unemployment insurance (UI) benefits, which give critical support not only to the record numbers of long-term unemployed workers but to the economy as well. Yet that's what will happen if, in the coming legislation to renew UI and the payroll tax cut for the rest of this year, policymakers include harmful provisions of the payroll-tax bill that the House passed last month.
Along with sharply curtailing the number of weeks of benefits, the House bill contained various "reforms," some of which would undermine UI's fundamental purpose since its establishment in the 1930s -- to provide temporary financial assistance to workers who lose their jobs through no fault of their own while they search for a new job. For example, the bill would deny UI benefits to all workers who lack a high school diploma or GED certificate and are not enrolled in classes to get one -- even though employers paid UI taxes on these workers' wages (and those taxes effectively came out of these workers' wages). It also would allow states to drug-test all UI applicants and condition eligibility on the results -- a standard not used for other federal programs ranging from farm price supports to tax subsidies. Such provisions should have no place in legislation to extend UI and the payroll tax cut through the end of 2012.
Current economic conditions justify continuing federal emergency UI at the levels in place last year. As the economy improves, the maximum number of weeks of benefits will fall automatically as states' unemployment rates fall. Once a sustained jobs recovery is underway, creating 200,000 to 300,000 or more jobs per month, and the unemployment rate is falling significantly, federal emergency benefits should expire. But the highest unemployment rate at which past emergency UI programs have expired is 7.2 percent -- 1.3 percentage points higher than December's 8.5 percent.
About the December Jobs Report
Job growth was solid in December, but the job market has a long way to go to regain full strength.
- Private and government payrolls combined rose by 200,000 jobs in December. Private employers added 212,000 jobs. The decline of 12,000 government jobs reflected a gain of 2,000 federal jobs, offset by a loss of 14,000 local government jobs (state government jobs were unchanged).
- This is the 22nd straight month of private-sector job creation, with payrolls growing by 3.2 million jobs (a pace of 143,000 jobs a month) since February 2010; total nonfarm employment (private plus government jobs) has grown by 2.7 million jobs over the same period, or 121,000 a month. The loss of 502,000 government jobs over this period was dominated by a loss of 381,000 local government jobs.
- In December, despite 22 months of private-sector job growth, there were still 6.1 million fewer jobs on nonfarm payrolls than when the recession began in December 2007 and 5.7 million fewer jobs on private payrolls. Growth of 200,000 to 300,000 nonfarm payroll jobs or more a month is typical in strong economic recoveries and will be necessary to close the jobs gap and restore full employment in any reasonable period of time. Even with December's gain of 200,000 jobs, average monthly growth in nonfarm payrolls has been just 142,000 jobs over the past six months.
- The unemployment rate dropped to 8.5 percent in December, and the number of unemployed Americans was 13.1 million. The unemployment rate was 7.5 percent for whites (3.1 percentage points higher than at the start of the recession), 15.8 percent for African Americans (6.8 percentage points higher than at the start of the recession), and 11.0 percent for Hispanics or Latinos (4.7 percentage points higher than at the start of the recession).
- The recession and lack of job opportunities drove many people out of the labor force, and we have yet to see a sustained return to labor force participation (people aged 16 and over working or actively looking for work) that would mark a strong jobs recovery. That situation did not improve in December. The labor force shrank by 50,000 people in December after falling by 120,000 in November. The labor force participation rate remained 64.0 percent in December, which is lower than it was a year ago when the unemployment rate was nearly a full percentage point higher, and it remains at levels last seen in 1984.
- The share of the population with a job, which plummeted in the recession from 62.7 percent in December 2007 to levels last seen in the mid-1980s, was 58.5 percent in December and has not been above that level for the last year and a half.
- Finding a job remains very difficult. The Labor Department's most comprehensive alternative unemployment rate measure -- which includes people who want to work but are discouraged from looking and people working part time because they can't find full-time jobs -- was 15.2 percent in December, down from its all-time high of 17.4 percent in October 2009 in data that go back to 1994, but still 6.4 percentage points higher than at the start of the recession. By that measure, almost 24 million people are unemployed or underemployed.
- Long-term unemployment remains a significant concern. Over two-fifths (42.5 percent) of the 13.1 million people who are unemployed -- 5.6 million people -- have been looking for work for 27 weeks or longer. These long-term unemployed represent 3.6 percent of the labor force. Before this recession, the previous highs for these statistics over the past six decades were 26.0 percent and 2.6 percent, respectively, in June 1983.
The Center on Budget and Policy Priorities is one of the nation's premier policy organizations working at the federal and state levels on fiscal policy and public programs that affect low- and moderate-income families and individuals.
LATEST NEWS
Ahead of Treaty Negotiations, Hundreds March to 'End the Plastic Era'
"As adults who come to Ottawa to negotiate the plastic treaty, you must protect our rights to live in a healthy and safe environment," one young activists said.
Apr 21, 2024
Days before national delegates gather for the fourth and penultimate negotiations to develop a Global Plastics Treaty in Ottawa, Canada, around 500 Indigenous and community representatives, members of civil society and environmental groups, and experts and scientists gathered for a "March to End the Plastic Era" on Sunday.
The protesters, organized under the banner of Break Free From Plastic, called for a treaty that significantly reduces plastic production and centers the frontline communities most impacted by the plastics crisis.
"Delegates must act like our lives depend on it—because they do," Daniela Duran Gonzales, senior legal campaigner with the Center for International Environmental Law, said in a statement. "Our climate goals, the protection of human health, the enjoyment of human rights, and the rights of future generations all rest on whether the future plastics treaty will control and reduce polymers to successfully end the plastic pollution crisis."
"Short-sighted business interests must be out of the room because the only way to achieve equitable livelihoods is when we have a healthy planet."
The official meeting of the Intergovernmental Negotiating Committee (INC) to craft a "international legally binding instrument on plastic pollution, including in the marine environment," will run from April 23 to 29 in the Canadian capital.
Break Free From Plastic called the negotiations a "make or break" moment for the treaty, which is supposed to be completed in late 2024 in Busan, South Korean. However, civil society groups have expressed concern that oil-producing countries and the plastics industry will water down the agreement and steer it toward waste management and recycling, which has been revealed to be a false solution to plastic pollution knowingly promoted by the industry for decades.
The last round of negotiations concluded in late 2023 in Nairobi, Kenya, with little progress made after 143 fossil fuel and chemical lobbyists attended.
Salisa Traipipitsiriwat of Thailand, who is the senior campaigner and Southeast Asia plastics project manager for the Environmental Justice Foundation, said ahead of Sunday's march that it was "crucial for world leaders to step up and put the people and planet at the forefront."
"Short-sighted business interests must be out of the room because the only way to achieve equitable livelihoods is when we have a healthy planet," Traipipitsiriwat added.
On Sunday, marchers gathered for a press conference at 10:30 am ET before marching at around 11:30 am from Parliament Hill to the Shaw Center, were negotiations will begin on Tuesday. Crowds began to disperse around 1:30 pm. Participants carried large banners with messages including, "End the plastic era," "End multigenerational toxic exposure," and pointing out that 99% of plastics came from fossil fuels. The gathering featured live music and art, including a giant tap pouring out plastics and a "Plastisaurus rex" with the message "Make single-use plastic extinct."
(Photo: Break Free From Plastics)
"Now's the time to be bold and push for a treaty that cuts plastic production and holds polluters accountable," Julie Teel Simmonds, a senior attorney at the Center for Biological Diversity, said in a pre-march statement. "I'm inspired to be joining so many advocates in Ottawa, standing up against the enormous harm the fossil fuel and petrochemical industries are causing to people's health and the planet. I hope to see countries showing ambition this week, and I urge them to remember what's at stake for future generations."
Civil society groups have compiled several demands for an ambitious and effective treaty. These are:
- Centering human rights, especially those of Indigenous communities, young people, and workers most impacted by plastic pollution;
- Protecting the rights of Indigenous peoples throughout the treaty process;
- Dealing with plastics across their entire lifecyle;
- Reducing production as a "nonnegotiable" part of the treaty;
- Eliminating toxic chemicals and additives from plastics;
- Bolstering reuse systems for plastics that are non-toxic;
- Prioritizing first prevention, then reuse, recycling, recovery, and disposal when managing plastic waste;
- Ending "waste colonialism" by strengthening regulations for trading plastics;
- Guaranteeing a "just transition" for people employed across the plastics lifecycle;
- Including "non-party" provisions in the treaty;
- Establishing a mechanism to fund countries so they can fully implement the treaty; and
- Enshrining conflict-of-interest policies as a protection against plastics industry lobbying.
The coalition emphasized the need to tackle the problem of plastic from cradle to grave.
"Plastic doesn't just become pollution when it's thrown away," said Jessica Roff, the U.S. and Canada plastics and petrochemicals program manager for the Global Alliance for Incinerator Alternatives. "Plastic is pollution, from the moment the fossil fuels are extracted from the ground to the eternity of waste it spawns."
Chrie Wilke, global advocacy manager for the Waterkeeper Alliance, said "Clearly the crux of the plastic pollution crisis is too much plastic being produced. There is no way to recycle our way out of this. We must face the fact that plastic and petrochemicals, at current production levels, endanger waterways, communities, and fisheries across the globe. Cutting production and implementing non-plastic alternatives and reuse systems is essential."
(Photo: Ben Powless/Survival Media Agency)
Activists also emphasized the environmental justice implications of plastic pollution, and how some communities and groups are more burdened than others, both from the dangers of the production process and from waste disposal.
"Children and youth like me suffer the most and are recognized as a vulnerable group," said Aeshnina 'Nina' Azzahra, the founder of River Warrior Indonesia. "My playground and my future are at risk. We all want our environment to be plastic-free, but please don't put your burden on the other side of the world—this is NOT fair. As adults who come to Ottawa to negotiate the plastic treaty, you must protect our rights to live in a healthy and safe environment."
Jo Banner, co-founder and co-directer of The Descendants Project, said:"Frontline community members, such as myself, are participating in these treaty negotiations with heavy hearts as our communities back home are struggling with sickness and disease caused by the upstream production of plastic."
"Although our hearts are heavy, they are full with passion urging negotiators to aim for an ambitious treaty that caps plastic production," Banner added. "Areas such as my hometown, located in the heart of Louisiana's Cancer Alley, need a strong treaty now. There is no more time to waste."
Keep ReadingShow Less
'Obvious Evidence of Genocide': Mass Grave Discovered in Gaza's Nasser Hospital
Palestinian rescue workers said they found hundreds of bodies, some with their hands bound and others with their skin, organs, or heads removed.
Apr 21, 2024
Palestinian civil defense discovered hundreds of bodies buried by Israeli forces in a mass grave inside the complex of Khan Younis' Nasser Medical Complex on Saturday.
Rescue workers said they had removed at least 200 bodies as of 12:00 pm local time on Sunday, and they estimated that at least another 200 remained, Middle East Eye reported.
"We found corpses without heads, bodies without skins, and some had their organs stolen," the director-general of the Government Media Office said in a statement shared by Quds News Network.
"Following the mass graves at Al-Shifa hospital, it looks like Israel is a voracious death machine turning hospitals in Gaza into graveyards."
The Israel Defense Forces (IDF) withdrew from Khan Younis on April 7. While they occupied the city, they stormed the Nasser Medical Complex in February, arresting several doctors, damaging the structure with shelling, and rendering it unable to function as a hospital.
Al Jazeera reporter Hani Mahmoud said the bodies found in the Nasser grave included children, young men, and older women. Rescues said that some of the bodies they found had been buried with their hands tied behind their backs, according to Middle East Eye.
"Our teams continue their search and retrieval operations for the remaining martyrs in the coming days as there are still a significant number of them," Palestinian emergency services said in a statement shared with Al Jazeera.
The news came as the U.S. House of Representatives voted on Saturday to send another $26 billion to Israel, including for military aid.
"These mass graves are obvious evidence of genocide and the most unthinkable war crimes. And yet, the House just signed off on $26 billion in weapons to fuel the genocidal Israeli military, while Israel threatens a full scale ground invasion to massacre Palestinians in Rafah," the U.S. Campaign for Palestinian Rights said on social media.
This is not the first mass grave that has been discovered near a Gaza Strip hospital since Israel began its devastating bombardment and invasion following Hamas' deadly October 7 attack on southern Israel. When the IDF withdrew from the al-Shifa hospital earlier this month, Palestinian journalist Hossam Shabat reported seeing hundreds of dead bodies outside the hospital, many that had had their hands and legs bound and their bodies run-over by bulldozers. Al Jazeera reported that several mass graves were found near al-Shifa.
"Following the mass graves at Al-Shifa hospital, it looks like Israel is a voracious death machine turning hospitals in Gaza into graveyards. Wake up world!" Palestinian politician and activist Hanan Ashrawi wrote on social media.
Muhammad Shehada, the communications chief for Euro-Med Human Rights Monitor, expressed shock that there was not more media coverage of the Nasser grave.
"I CANNOT find a single headline in any mainstream media about this!" Shehada wrote on social media. "Imagine it was Ukraine? or Israel?"
Over the weekend, the the Gaza Health Ministry reported that the death toll from Israel's war on Gaza surpassed 34,000, though this is likely an undercount since several people remain trapped beneath rubble.
Keep ReadingShow Less
Historic Number of Democratic Reps Vote Against Unconditional Aid to Israel
"Most Americans do not want our government to write a blank check to further Prime Minister Netanyahu's war in Gaza," a group of nearly 20 of the 37 no-voting lawmakers said.
Apr 20, 2024
Nearly 40 House Democrats voted against a measure to send around $26 billion more to Israel as it continues its war on Gaza that human rights experts have deemed a genocide.
While the Israel Security Supplemental Appropriations Act passed the Republican-led House by a vote of 366-58, party insiders said it was significant that such a large number of Democrats had opposed it, with more centrist lawmakers joining progressives who have called for a cease-fire since October.
"Despite the weapons aid package passing, this is the largest number of Democratic lawmakers to vote against unrestricted weapons aid for Israel in recent memory," senior Democratic strategist Waleed Shahid observed on social media.
"If Congress votes to continue to supply offensive military aid, we make ourselves complicit in this tragedy."
Human rights lawyer, lobbyist, and former Democratic National Committee committeewoman Yasmine Taeb posted that it was "incredibly significant that 37 Democrats voted NO and rejected AIPAC's role and influence in the party."
Senior Democrats who opposed the funding included Reps. Jamie Raskin (D-Md.), Maxine Waters (D-Calif.), Lloyd Doggett (D-Texas), Bennie Thompson (D-Miss.), Jim McGovern (D-Mass.), and Bonnie Watson Coleman (D-N.J.)
The bill earmarks around $4 billion for Israel's missile defense systems and more than $9 billion for humanitarian aid to Gaza, according toThe Associated Press. However, while lawmakers approved of individual expenditures, they balked at giving more unconditional military aid to the far-right government of Israeli Prime Minister Benjamin Netanyahu.
"U.S. law demands that we withhold weapons to anyone who frustrates the delivery of U.S. humanitarian aid, and President Biden's own recent National Security Memorandum requires countries that use U.S.-provided weapons to adhere to U.S. and international law regarding the protection of civilians," McGovern said in a statement explaining his vote. "To date, Netanyahu has failed to comply. It's time for President Biden to use our leverage to demand change."
Nearly 20 Democratic representatives released a joint statement explaining their vote. They were McGovern, Doggett, Watson Coleman, Joaquin Castro (D-Texas), Nydia Velázquez (D-N.Y.), Pramila Jayapal (D-Wash.), Ro Khanna (D-Calif.), Alexandria Ocasio-Cortez (D-N.Y.), Becca Balint (D-Vt.), Greg Casar (D-Texas), Mark Takano (D-Calif.), Barbara Lee (D-Calif.), Earl Blumenauer (D-Ore.), Judy Chu (D-Calif.), Hank Johnson (D-Ga.), André Carson (D-Ind.), Jesús "Chuy" GarcÃa (D-Ill.), Jonathan Jackson (D-Ill.), and Jill Tokuda (D-Hawaii).
"This is a moment of great consequence—the world is watching," the lawmakers wrote. "Today is, in many ways, Congress' first official vote where we can weigh in on the direction of this war. If Congress votes to continue to supply offensive military aid, we make ourselves complicit in this tragedy."
The lawmakers clarified that their no votes were specifically "votes against supplying more offensive weapons that could result in more killings of civilians in Rafah and elsewhere."
While they acknowledged that Israel had a right to defend itself, they argued that its greatest security would come from a cease-fire that enabled the release of hostages, humanitarian aid to enter Gaza, and peace negotiations to begin in earnest.
"Most Americans do not want our government to write a blank check to further Prime Minister Netanyahu's war in Gaza," they concluded. "The United States needs to help Israel find a path to win the peace."
Mark Pocan (D-Wis.), who also voted no, said that he "could not in good conscience vote for more offensive weapons to be given to Israel to be used in Gaza without any conditions attached."
Pocan further called the "devastation inflicted upon innocent civilians in Gaza" "unjustifiable" and argued that "further arming Netanyahu and his extreme coalition could only lead us to a wider conflict in the Middle East."
In a speech on the House floor, Lee also criticized the bill for failing to restore funding to the United Nations Relief and Works Agency for Palestine Refugees in the Near East, which provides the bulk of aid to the Gaza Strip. The U.S. paused funds for the agency following Israeli allegations that 12 of its employees participated in Hamas' October 7 attack, but other nations have since restored funding as the veracity of these allegations has been called into question.
"This is a grave abdication of U.S. humanitarian obligations," Lee said. "It is simply nonsensical to provide badly needed humanitarian assistance while simultaneously funding weapons that will be used to make the humanitarian crisis in Gaza worse."
She added, "The United States taxpayers should not be funding unconditional military weapons to a conflict that has created a catastrophic humanitarian disaster."
The bill sending funds to Israel was only one of several measures passed on Saturday as part of a $95 billion foreign spending package that will also provide a long-delayed approximately $61 billion for Ukraine in its war with Russia and around $8 billion to counter China in the Indian and Pacific oceans. Among the bills passed Saturday was one banning popular social media app TikTok in the U.S. if the Chinese company that owns it refuses to sell, theAP reported further.
The package will now go to the U.S. Senate, which could pass it as early as Tuesday. President Joe Biden has promised to sign the measures as soon as he receives them.
Keep ReadingShow Less
Most Popular