Real unemployment up to 17.3%. 661,000 drop out of labor force. Is the answer tax credits?

http://www.businessweek.com/news/2010-01-09/shrinking-u-s-labor-force-keeps-unemployment-rate-from-rising.html

Shrinking U.S. Labor Force Keeps Unemployment Rate From Rising
January 09, 2010, 12:22

By Bob Willis and Courtney Schlisserman

Jan. 9 (Bloomberg) -- An exodus of discouraged workers from the job market kept the U.S. unemployment rate from climbing above 10 percent in December, economists said.

Had the labor force not decreased by 661,000 last month, the jobless rate would have been 10.4 percent, according to economists including David Rosenberg at Gluskin Sheff & Associates in Toronto and Harm Bandholz at UniCredit Research in New York.

“The actual unemployment rate is higher than shown by the official numbers,” Bandholz said yesterday after a Labor Department report released in Washington showed the economy unexpectedly lost 85,000 jobs in December while the jobless rate was unchanged.

About 1.7 million Americans opted out of the workforce from July through December, representing a 1.1 percent drop that marks the biggest six-month decrease since 1961, the Labor Department report showed. The share of the population in the labor force last month fell to the lowest level in 24 years.

The so-called underemployment rate -- which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking -- rose to 17.3 percent in December from 17.2 percent.

The number of discouraged workers, those not looking for work because they believe none is available, climbed to 929,000 last month, the most since records began in 1994.

more...

http://www.wsws.org/articles/2010/jan2010/jobs-j09.shtml

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The Obama administration met the latest US jobs report with scarcely concealed indifference. President Obama counseled that the “the road to recovery is never straight” but that the economy “is still pointing in the right direction,” as he announced a measure that would hand over $2.3 billion in tax credits to manufacturers to put in place “green technologies.” These would fund 180 projects and would create a grand total of 17,000 jobs, according to the administration.

Christina Romer, Obama’s chair of the Council of Economic Advisers, called the December job losses a “slight setback” when “compared with the unexpectedly good report for November.” Romer added that the report “underscores the need for responsible actions to jump-start private-sector job creation.” Romer’s references to “responsible actions” and “private-sector job creation” serve notice that the administration is not contemplating any new government stimulus or public works program.

All indications are that for America’s workers, 2010 will be even worse than 2009.

The Labor Department report confirmed the consensus view that the official unemployment rate in 2010 will remain close to, or above, 10 percent. Even should job growth occur, it would have the effect of driving up the official unemployment rate by drawing back into the hunt for jobs, and thus into the official workforce, “discouraged workers” who had given up looking.

To reverse the unemployment rate, economic growth would have to be more rapid than the 4 percent gross domestic product increase predicted by many economists for the fourth quarter of 2009, and the economy would have to add well over the 100,000 to 150,000 new jobs monthly necessary to keep pace with population growth.

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Stop worrying.

Unless you really believe that. Because I don't

a swarm of DUers attacks me for "not being positive". SO I am just trying to brighten the day up a bit.

The non reality based crew got to you huh?

Eventually it should. Just not yet.

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:eyes:

taxing heavily those who have moved jobs offshore. Any US based corporation should not be allowed to manipulate their tax base if they aren't keeping work here. Keeping jobs here which by the way puts more money back into the system because we can't afford to buy ANYTHING if we ain't workin' at a decent wage.............

...and if you look at the numbers for that sector, against all odds, its actually going in the right direction.

What are they going to do?

Just write a large check to the U.S. Government?

-or-

Invest, what they would be paying to the U.S. Government, in America?
Like building new factories, expanding factories, opening new businesses, expanding their business, hiring more employees, donating money to charity and their community, etc. etc. All of that creates JOBS. Oh, and if they were forced to do that, you would no longer see money pissed away importing from China, because it will piss the rich off.

Gee... Why in the Hell do people think the 1950s saw the greatest economic expansion the world has ever seen?
It wasn't because the government most of what the rich made and just gave it to the American People, it's because it forced the rich to invest in America and the American People.

How about good old protectionism.
We are the biggest consumer in the world. The people who do the consuming ought to reap the benefits.

The answer for you, my friend, is TAX CREDITS!

Have no bed to sleep on, no food to eat? The answer is... TAX CREDITS!

If we give you a tax credit, You'll be able to BUY that toilet paper, that bed or that food.

You can't find a job? WELL THE ANSWER IS TAX CREDITS!

I'm not really sure how, but TAX CREDITS make everything more rosy!

It's like believing in Santa Claus, the Easter bunny and Unicorns all over again!

It's like the Sham-Wow, it solves everything.

:shrug: