Tag Archives: unemployment

A Simplification of Mystifying Economic Numbers

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Obama’s speech to Congress on Sep 8, and the jobs crisis in general, contained a lot of percentages and statistics. Some can be difficult to navigate through or find, so below is a collection of a few of those recently released.

  • The New York State Department of Labor released a report saying that 14,100 private sector jobs were added in July. Altogether, they’ve regained 57 percent of private sector jobs lost during the recession. This sounds like good news. However, the unemployment rate in the state (from that same report) is still at 8 percent. In fact, outside of New York City, unemployment has actually gone up by 0.1 percent in the rest of the state.
  • Part of the point of the Recovery Act of 2009 was to stave off the worst effects of the recession on the jobs market. Unfortunately, these funds were only a temporary stopgap measure. As can be seen on the third page of this Congressional Budget Office report on the estimated impact of the stimulus on employment, the predicted affect of the funds on the unemployment rate is about to drop off dramatically from 2011 to 2012.
  • The conclusion? If private sector jobs are being added as swiftly as public sector jobs are cut, the unemployment rate will, unfortunately, not change very much. Or worse. The latest Job Openings and Labor Turnover Survey release from the Bureau of Labor Statistics paints a much more accurate, albeit bleaker, picture: for every four unemployed people, there is only one, solitary job opening.

East Harlem On Obama’s Jobs Bill

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Spanish Harlem’s unemployed population, hovering around 16 percent according to the Census Bureau, is tentatively hopeful that President Obama will get his jobs bill passed. The primary concern, however, is whether the bill can actually create more local small business jobs instead of just painting a brighter picture.

Guadalupe Castro owns Fierce Nail & Spa salon on 117th Street in East Harlem (Photo Credit: Sarah Kazadi)

– Will the incentives work?: The $447 billion American Jobs Act comes with incentives the president believes will get small businesses hiring again, including payroll tax cuts and a $4,000 tax credit to companies hiring the long-term unemployed. Guadalupe Castro, a small business owner in Spanish Harlem, said she wouldn’t mind hiring to “help out,” but that the incentives are not a guarantee that she’ll expand her staff. “They have to be professional, they have to know what they’re doing, it’s going to be a lot of things all together before I can say yes,” she said.

–How long will the incentives last?: There is skepticism that the bill’s incentives will create long term job opportunities. “I don’t think it’s going to work,” said Eladio Perez, an East Harlem resident who has been out of work since October 2009. “If they hire you just based on the incentives, a little after that you’ll be out again looking for work,” he said.

–How long before results?: Some unemployed East Harlem residents applaud the plan but believe that it may take too long to bear fruit. “What they’re doing may not come fast enough to help us. You still have to eat, you still need a roof over your head and hot water,” said Angelo Marquez, who has been unemployed for two years. President Obama added a measure to pay small businesses faster, “So that puts more money in their pockets quicker, which means they can hire folks quicker,” he said in an address at North Carolina State University. 

President Obama sent his job bill to Congress on Monday. There is currently no set date on when it will be voted on.

From Washington DC to New York City, Politicians Talk Jobs Jobs Jobs.

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After the Bureau of Labour Statistics released disheartening unemployment numbers, the country’s political arena was full of job-talk this week, as politicians attempted to calm job-market panic:

  • Mayor Michael Bloomberg announced $180,000 worth of grants for small businesses on Tuesday. He declared that the city’s number-1 priority is to create jobs, reported WNYC. The Department of Small Business Services will give this round of grants to four businesses. After unpopular budget cuts this summer that resulted in 777 school employees losing their jobs, Bloomberg hopes that the grants will provide spark to New York City’s job-market.
  • In what was seen by some as a referendum on President Obama’s ability to handle the country’s economic woes, Bob Turner (R) won the race to replace ex-Rep Anthony Weiner, reports the New York Times. Turner beat David Weprin (D), in a tightly contended race that ended on Tuesday. “We seek leadership and direction in returning prosperity and finding jobs for the people of this district,“ said the congressman-elect in his victory speech. Jobs and the faltering economy were central issues in a race that saw District 9 elect their first Republican to congress since 1923.

  • Obama proposed his new Jobs Act to congress last Thursday, in the hopes to stimulate the country’s stagnant job-market. If passed by congress, the bill would provide tax cuts for small business owners as well as a number of spending measures. Obama has said that the $447 billion bill would be funded by deficit reduction measures determined by the Joint Congressional Committee.

A Down Economy, A Changing New York

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The need to be creative in a depressed economy continues as the nation’s unemployment rate stagnates at 9.1 percent, adding no new jobs to the economy as of August.

Ad Agency News quotes Governor Cuomo’s office as stating it’s battling an “image of having one of the worst business climates in the nation,” and that it’s subsequently embarking on a $50 million ad campaign to promote New York as a great place to live and work in.

Changing New York’s image from that of a financial mecca to an idea mecca akin to say,  Silicon Valley is somewhat old news: In December of 2010, The New York Times had this article on Mayor Bloomberg inviting universities worldwide to create a technological campus on a par with Stanford or MIT. According to the Times, the schools’ bids are due in October.

Although New York’s unemployment rate in July was actually lower than the rest of the nation—holding at eight percent—some analysis of 2010 Census data pointed toward a trend of New York exodus. The Empire Center, a project of the right-leaning Manhattan Institute for Policy Research, released a report in August that showed domestic migration from the state to be “the highest of any state as a percentage of population.”

Data from the 2010 Census also showed a marked migration among African Americans who have left their northern cities for a more comfortable lifestyle in the South, especially the suburbs. You can listen to a thoughtful report on this “reverse migration” from NPR’s Alex Kellog for Morning Edition, a phenomenon he describes as the “gradual return of many black Americans to the South.”

Photo by flickr member Alex E. Proimos

Unemployment Stays High, Black Unemployment Goes Higher

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The release of August’s jobs statistics last week by the Labor Department sparked a media frenzy over one number: zero. The report revealed that the nation failed to add jobs for the first time since last September. A media frenzy and wave of right-wing criticism of President Obama ensued.

But lost in much of the nation’s fervor was the fact that while the unemployment rate remained overall virtually unchanged, the rate for African Americans jumped from a seasonally adjusted 15.9 percent in July to 16.7 percent in August.  That’s the highest black unemployment rate in twenty-seven years.

In New York the picture isn’t much better.  While the state as a whole has fared relatively well in the recession, black unemployment remains high. The non-profit, non-partisan Fiscal Policy Institute put black unemployment at about fifteen percent (PDF) back in June.

FPI’s cheif economist James Parrott said blacks and hispanics are the first to be fired during the recession.  And Grace Wyler at Business Insider points out that cuts to jobs in the government are disproportionately affecting African Americans.

The recent numbers have spawned a new wave of pressure from left-leaning academics and groups that think President Obama needs to do more specifically for black America. Frequent TV commentator Dr. Boyce Watkins said race is completely missing from Obama’s rhetoric on unemployment.

But in a recent radio show interview the President breached the topic of race, something he rarely does. Talking about the recession, he said that while every American has suffered, “obviously the African-American community has suffered even more.”

As Jobs Decline, New Yorkers Contemplate Hydrofracking

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As the unemployment rate and jobs stagnate nationwide, New Yorkers consider the economic upside of hydrofracking.

The introduction of hydrofracking to New York could create up to 54,000 jobs, according to a new study released by the Department of Environmental Conservation.  The study states that the industry could pay New Yorkers up to $2.5 billion in work wages.  It could also result in a large number of economic spin offs to New York, as well as up to $121 million for the state government in personal income tax receipts, said the DEC.

Hydrofracking is a new controversial drilling method, through which the state would be able to access a large untapped reserve of its natural gas.  Although the industry could have tremendous economic upside, environmentalists are concerned that hydrofracking may have dangerous effects on drinking water reserves.

Hyrdrofracking has become a central issue in the tight race for the congressional seat of Ex-Rep. Anthony Weiner, reports the NY Daily News.  While Republican Bob Turner has expressed his support for hydrofracking, Democrat David Weprin has stated his opposition to the contentious drilling technique.  Weprin has said environmental concerns outweigh the economic stimulus the industry could bring to New York.

New Yorkers have a total of 90 days to decide whether they would like to take the environmental risks that have been linked with hydrofracking.  If it is implemented as an acceptable way to drill for gas, hydrofracking could provide much needed relief to the economy and job market.

New York Teens Face Uncertain Employment Future

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As New York’s economy struggles to recover from the nationwide recession, unemployment and poor job prospects continue to affect not just adult workers, but younger generations as well. However, the causes of the problems teens face trying to enter the workforce are not limited to the country’s financial woes. Furthermore, the long-term effects go beyond the loss of extra spending money.

Reuters cited a report from Northeastern University’s Center for Labor Market Studies to illustrate that the summer job outlook is worse than ever for teens. Even more alarming, their struggles now may make it harder for for teens to find full-time work later in life.

Mae Anderson of the Associated Press points out that the combination of unemployed teens and parents facing lower or non-existent wages is making retailers nervous, especially during the critical back-to-school shopping season.

According to the Wall Street Journal, children who are part of the city’s foster care system are facing a much greater struggle to find employment than their peers. The WSJ article takes its cue from a report entitled, “Fostering Careers” published by the Center for an Urban Future.

New York City Mayor Michael Bloomberg announced a plan to combat the disparities between young black and Latino men and their peers, including in the job market. Part of the initiative is aimed at creating better ways to guide them toward employment.

The New York Times reports that Bloomberg also cited the initiative as a potential remedy for the rash of shootings that occurred over Labor Day weekend.