A lack of job growth continues to demonstrate the slackness of the U.S. economy.
The month of June brought no meaningful improvement in the nation’s high unemployment, and the disheartening statistics are widely seen as a sign the economy is in danger of slipping back into recession.
The unemployment rate declined slightly, but the nation’s overall payroll shrank by 125,000 jobs, due in part to the completion of the U.S. Census head count. The average hourly workweek and average hourly wages also declined last month.
June’s unemployment rate of 9.5 percent is the same as it was one year ago.
Perhaps most disconcerting is the fact that the rate of long-term unemployment has risen to a record high. Those who have given up looking for work ”“ and are not even counted in unemployment statistics ”“ now number in the millions.
These circumstances provide a good argument in favor of two Democratic priorities: Providing stimulus funds to struggling state governments and extending unemployment benefits for the long-term unemployed.
Unfortunately, both priorities are tied up by politics in the U.S. Senate, where Republican leaders have dug in their heels against extending unemployment benefits ”“ unless they are “paid for” through reductions in unspent federal stimulus funds.
The failure to extend unemployment benefits will bring hardship to millions as, week by week, more and more lose this economic lifeline. On July 1, Rep. Chellie Pingree, D-Maine, observed: “Without this extension, 6,500 people in Maine will lose benefits this week, and that means they will stop spending money on groceries and gas and other necessities in their local communities.”
These circumstances seem to call for a compromise on behalf of extended unemployment benefits, but such an effort failed in the Senate last week. Lamenting this failure, Sen. Olympia Snowe, R-Maine, complained that “the Senate turned a blind eye to its responsibility to provide hard-working American families with adequate resources to weather these tough economic times.”
Congress adjourned for a holiday break last week without finding a way to keep unemployment checks coming. At a time when nearly half of all unemployed workers have been out of work for more than six months, hardship is certain to result.
Democrats and Republicans should find a way to collaborate on extending benefits. Otherwise, the personal and economic consequences could be dire.
— Questions? Comments? Contact Managing Editor Nick Cowenhoven at nickc@journaltribune.com.
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