Jobless Wait Record 34.4 Weeks for Work

[marmar]

Duration of Unemployment in U.S. Rises to Record 34.4 Weeks
By Shobhana Chandra


June 4 (Bloomberg) -- Unemployed Americans are facing the longest wait on record to find work, a sign faster economic growth is needed to reduce the jobless rate from close to a 26- year high.

The average duration of unemployment jumped to 34.4 weeks in May from 33 weeks the prior month and 16.5 weeks in December 2007, when the recession began, a Labor Department report showed today in Washington. The number of unemployed has almost doubled to 15 million since the start of worst slump since the 1930s.

“We need faster growth, because without it, we won’t get the jobs,” said Henry Mo, an economist at Credit Suisse in New York. “We are working in that direction, but it’ll take a very long time to resolve the long-term unemployment problem. The Federal Reserve acknowledges that the labor market will take time to fully recover.”

Private payrolls rose by 41,000 in May, today’s Labor Department report showed, trailing the 180,000 gain forecast by economists. Including government workers, employment rose by 431,000, boosted by a jump in hiring of temporary census workers. The jobless rate fell to 9.7 percent from 9.9 percent as Americans discouraged by the lack of available jobs dropped out of the labor force.

“If that level of private job creation continues, it will not make a substantial dent in the unemployment rate,” Federal Reserve Bank of Atlanta President Dennis Lockhart told reporters today after a speech in Braselton, Georgia. “It is my view we will make progress on unemployment. Perhaps by the end of 2011, we will be below 9 percent.” .........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=a8ejQjQlXY1Q&pos=2

[DJ13]

1. At this rate were screwed

This isnt a recession caused by a lack of business like the last several recessions.

This one started because the consumer could no longer afford the confluence of record energy prices, rising mortgage resets, and stagnant wages.

We no longer have a manufacturing base to add jobs into, and theres precious little talk out of DC to try and resurrect our manufacturing base to decrease the unemployment and increase the wages.

Government make work doesnt solve the problem.

[marmar]

2. Yep....That's what all the V-shaped recovery happy talk crowd overlooks.....

This one is structurally very different.

[AllentownJake]

6. Deflationary Debt Depressions

Generally look different than inventory recessions but Tim Geithner and Ben Bernake haven't gotten to that chapter yet in their econ books, because it can't happen anymore.

[Possumpoint]

5. The Bill of Goods

called deficit spending has come home to haunt both governments and home spending. Knowing that consumer spending was 70% of our economic engine the government was and still is encouraging us to spend baby, spend. Though the government hasn't yet, we've hit the wall. I'm trying to pay off CC cards and save some money. I don't need the pressure to go back to indiscriminate spending. However, without that on a massive scale any recovery is doomed.

[OhioChick]

3. K&R n/t

[girl gone mad]

4. This is the real tragedy in our economy.

And it appears that Obama is being badly advised on how to address this crisis (told to ignore it and, stupefyingly, to focus on reducing the deficit).

[AllentownJake]

7. I'm sure a war is on the horizon (well another one)

When all else fails, blow things up.

[DFW]

8. My younger daughter had to leave the country to find a job in her field

She wanted to stay in New York, but if it's making $100K in Europe or waiting on tables in Manhattan,
that's not much of a choice. She'll be back here in Germany before Thanksgiving.

[Berry Cool]

9. And it's not going to change unless companies start hiring

instead of waiting for Mr. or Ms. Right (and I mean Mr. or Ms. Perfect On Paper) to make a job offer. And making conditions like "We will not consider anyone who is unemployed at all."