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While looking around NYTimes.com I stumbled across this rather scary-looking graph. That's a graph of the job losses in the past recessions, and ours is that rather nasty-looking dark blue line. Notice how steep the decline compared to other recessions at the same time.
Yes, this recession has been rather ugly, but I am not telling you any "breaking news" here. The article points out that 6.1% of the economy's nonfarm payroll jobs were lost since the beginning of the recession. Unfortunately, we can't be certain that we have reached the end of the job losses.
Theoretically, the recession ended last summer (the article attributes that belief to "many economists"); why haven't the job losses? We have to have job creation in order for this recession to turn around. Was the last jobs report a step in the right direction? Yes.
However, let's not forget that we really have no idea how many Americans don't have jobs and have given up on finding new employment. Disenfranchised job seekers are the ones that really need our help, as they have given up hope. The problem is, once these workers begin looking for jobs again, the number of jobless will increase and cause the payroll data to get worse.
I think things are going to get better, we just have to remember that it may appear that things are getting a lot worse before they will appear to get better.
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Reader Comments (Page 1 of 1)
3-08-2010 @ 11:16AM
ronandlane said...
I think we are in much worse shape than anyone can imagine. After all we have outsourced millions of high quality Americna jobs. These jobs will never return home, that is guaranteed.
3-08-2010 @ 1:20PM
C Caton said...
Yes they do need help, bigtime. Some people are practically shell-shocked. In some cases, people's health insurance now costs more than their rent/house payment does.
I met a young mother last year, who's husband was layed off. She went to work for a major health insurance company, in a clerical position making $10 an hour, thinking she'd be able to get cheaper insurance for her family there. Well, it wasn't. It was $750 a month. Her rent, since moving after her husband's job loss is $600.
I don't think any big spurring of the economy is really going to be sustained until health insurance prices roll back to where they were perhaps a decade ago. It simply eats up too much, it's expensive for companies and employees alike. And woe be unto you if you have to buy it on your own.
3-08-2010 @ 3:42PM
Iridium said...
My new health insurance premiums are more than the mortgage on my house.
I am actually contemplating canceling my insurance and buying another house. I can then rent the house for $1200 a month and pay for the mortgage and my insurance premiums. Not to mention the extra tax deductions.
I only use about $500 a year worth of health care but I have to pay over $8000 a year now just for insurance. Doesn't make much sense but if my wife or kid gets sick then I will lose my house without insurance. Great system we have.
The answer is not the government it is to abolish all insurance. Before health insurance became mandatory it cost $40 to see a doctor in the early 1990's. In 1996 it went to $85 to see my doctor, in '98 it went up to $150, by 2000 in was $200 to see my doctor. Massive price increases to see the same person for the same thing.
3-08-2010 @ 3:52PM
william lindblad said...
That graph only goes back to 1974 and the current does not compare well with any of the time period(s) shown. If you really want to know how "now" compares to the past it should be compared to the period that begins in 1893.
3-08-2010 @ 4:17PM
C Caton said...
Probably what'll happen eventually if something doesn't change. All of the healthy people will cancel their health insurance so that they can actually live again, buy things like food, houses and cars.
Then the insurance companies will be sitting there with all of their customers with chronic health issues...then what?