Public Comment

The Unholy Trinity:High Unemployment, Long Term Unemployment, Poverty

Harry Brill
Friday October 23, 2020 - 10:32:00 AM

Those of us who live in California are residing in the third worst state with regard to unemployment. The current unemployment rate is 13.3 percent; There are more than two million without jobs, which is twice as many as last year. 

But although the unemployment rate nationally is 9.7, which is considerably lower, the rate has begun to climb recently, The unemployment rate in February was only 3.5 percent, but has since more than doubled. The considerable increase in just a few months is certainly worrisome.  

Although a high rate of unemployment is serious, an additional concern is long term unemployment. If the joblessness is short it is very unlikely to be too worrisome.. But long term joblessness will very likely involve substantial deprivations. When cutbacks are severe and routine, then poverty is around the corner.  

Our task is to connect and understand this unholy trinity which is how these three issues, unemployment, long term joblessness, and poverty are linked.  

But to make sure you got it right, avoid the Bureau of Labor statistics, which is the agency that is responsible for providing you with false estimates on unemployment issues. Jobless workers who haven’t actively looked for work in the last four weeks no matter why are not counted as unemployed, For example the explanation by thousands of job seekers that they need to work but were discouraged is always considered inadequate. No exceptions. 

In fact, about seven million workers who are unemployed and who should be counted as jobless are not counted even though they claim that they want a job now, 

Among those who have been especially hard hit are African Americans. It is not only because their unemployment rate is high. Substantial numbers have been without jobs for at least six months. Just how many? The long-term unemployed for Blacks accounted for 45.5 percent of their unemployment. So many of these jobless workers were forced into poverty. Notice the connections between high unemployment, long term unemployment, and poverty. 

Although not as severe, young job seekers, between the ages of 16 to 24 have been experiencing a high rate of unemployment. Their unemployment rate is 18.5 percent, Why so high? An obvious explanation is their lack of experience. However, many jobs do not require skills or could be easily learned. A more relevant explanation, which high unemployment numbers suggest, is that there are not enough jobs to go around. As a general rule, when you see a large number of workers classified as unemployed, don’t blame the victims. Last year the unemployment rate for youth was half the current number. So to understand the trends, we need to look at the shortcomings of the economy and what government is doing and not doing.  

About the problem of poverty, which is impacting a growing number of workers, blame the federal government. According to a study conducted by Columbia University, 8 million Americans have fallen into poverty as a direct result of the government refusing to renew the $600 weekly supplemental unemployment checks which expired in July.  

What then should be done?. The money to address the issues is available. Working people for the most part have been paying taxes all their working lives. But corporate America has been successful avoiding their tax obligations. Now the government must provide millions of jobs as it did during the 1930s depression, A growing number of the poor are already going hungry. This is not only wrong .It is criminal.