Monday, January 10, 2011

Very Disturbing Employment Trends

[mEDITate-OR:
start crying: "Cry for U.S., Argentina!"
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Daniel, very well done, again.

However, while you do allude to those who may have left the workforce, you did not mention two very interesting facts: first, that a very large number of the long-term unemployed were above the age of 55.

While many of those over 62 have been forced to apply for SS early retirement, those under 62 are caught, in a death spiral. They cannot find jobs or get hired, at all, let alone for what they were earning. Many have used up all of their saving. They cannot borrow against the equity in their homes, if there is any left. Banks/lenders do not make 2nd mortgage loans to the unemployed. Their credit card limits have been reduced, even if they did make all their payments. {And, yes, we do know that the banks/lenders aren't making loans to those of U.S. who are still employed.} AND, they cannot retire, and get SS and medical coverage.

The harm - economic, mental, physical, and legal - being done to U.S. is simply incalculable.
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Lib1, we extend our deepest condolences, and like most of U.S., will pray for you, even if you will never be admitted, to Heaven.

However, you ARE factored, out. Students ARE factored IN during the summers, and if working after work are counted, as part time. But, those who have stayed in, or gone back, to school, are assumed to be not in "the workforce", and therefore are not counted as "unemployed".

Which raises a number of interesting questions. How many people HAVE gone back to school? How many old folks, above 62 have taken early SS? From the increase in student loans and the increase in SS applications, we suspect a lot of U.S. 

So, if large numbers of U.S. have not entered the labor force, and large numbers have retired, and large numbers have simply withdrawn and stopped looking, what is the REAL unemployment number?


Daniel, and Jim@CR, are correct, the "participation" rates may actually be the only true measure.

And pashley is also correct, the loss of incomes, of equities in homes, of tax revenues to cover SS and Medicare/Medicaid are HUGE. Many will never recover, and it might literally "kill" U.S. economically.
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Very Disturbing Employment Trends
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