Continuing Pressure on Median Income as Jobs Stay Scarce

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Editor’s Note: The predictions here and many other places by economists around the world rang true as the figures came out. Job “growth” is non-existent, with no immediate prospects for significant improvement. As long as 25% of the population is either making nothing or next to nothing (underemployed, or the hidden unemployed who have given up) median income will continue to decline. You don’t need to be an economist to understand that if there is no income there is no ability to spend. If there is no capital in the marketplace for common folks, then there is no prospect for job growth because small business is where most of the employment in America originates. It is a downward spiral and everyone seems to see it except the people running our government who either don’t understand, don’t care, or both.

You can trace it all to the withdrawal of wealth from the middle class through the use of deceptive credit and the deposit of those funds into the hands of a select few on Wall Street. The more they withdraw the weaker the economy. The weaker the economy the more unwilling anyone would be to invest in it. Just where do they think the answer is going to come from other than reversing the illegal pattern of foreclosures, prosecuting those responsible for restitution,  and reinstating the status quo — the one that existed BEFORE this scam began 30 years ago.

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Disappointing Job Growth in U.S. as Jobless Rate Hits 9.8%

By MOTOKO RICH

In a significant setback to the recovery and market expectations, the United States economy added just 39,000 jobs in November, and the unemployment rate rose to 9.8 percent, the Department of Labor reported Friday.

November’s numbers were far below the consensus forecast of close to 150,000 jobs added and an unemployment rate of 9.6 percent.

More than 15 million people remained out of work last month, and 6.3 million of them have been unemployed for six months or longer.

Private companies, which have been hiring since the beginning of the year, added 50,000 jobs in November. Most of those increases came from temporary help, where 40,000 jobs were added, and in health care, with an additional 19,000 jobs.

Retail jobs declined by 28,000 in November, while manufacturing, which had showed some strength earlier in the year, lost 13,000 jobs.

Government jobs dropped by 11,000 in the month.

Included in the latest report were revisions from previous months. The agency now says that the economy added 172,000 jobs in October, instead of the 151,000 jobs previously reported. September was revised to a loss of 24,000 jobs from a loss of 41,000.

The anemic net gain in jobs came as economists had been gradually showing more optimism. Weekly initial unemployment claims have recently been trending lower, pending home sales in October topped forecasts and November retail sales jumped by one of their highest increases in years.

Many risks remain for the economy. The latest numbers included 14,000 local government job losses, which could accelerate if legislatures and city councils are forced to prune further to deal with shrinking budgets and larger deficits. With President Obama’s deficit commission examining long-term spending cuts, unemployment benefits expiring and a Congressional fight over taxes looming, consumer spending, which has recently shown signs of life, could come under pressure. That, in turn, could cause businesses to reconsider hiring plans.

Analysts generally estimate that the economy needs to add at least 100,000 to 125,000 jobs a month simply to keep up with new entrants to the labor force. So if employers keep hiring at the current pace, it will not help reduce the unemployment rate for some time.

For those who have been searching for work for more than six months, this is a discouraging prospect. “I have looked high and low,” said Melissa Barone, who was laid off from a job in technical support 14 months ago. “I have a college degree and a ton of technical skills, but I can’t find a job.” Ms. Barone, 42, lives in St. Clair Shores, Mich., near Detroit, a particularly hard hit area. She has applied for hundreds of jobs but has yet to receive an offer.

If the economy is improving, that is news to Ms. Barone. “It doesn’t seem that way here,” she said.

15 Responses

  1. […] This post was mentioned on Twitter by Wanta Freedumb, USA Advocate. USA Advocate said: Continuing Pressure on Median Income as Jobs Stay Scarce: http://t.co/nL0OThr […]

  2. It’s very simple. The .01% of the population who profit off of the toil of the rest of us have over-reached. They’ve equity stripped the entire populace. But in their greed they’ve stopped the engine that drives the machine. When the middle class stops, everything seizes up..

    Just like the fool who drowns while crossing the stream with gold bars in his pockets…..

    They can’t help themselves, greed is a powerful vice. Suffer the world for their childish ways.

    It doesn’t need to be this way. Debt and the Fed are the enemy. Root them out. Fight the bankers to the death. It’s the only way.

  3. The A Man,

    Exactly. Absolutely agree. Only the rich can still spend – luxury merchants are doing well. There are increasingly huge disproportionate distribution of wealth. And, those that have – want more.

    Have to add – that as someone with a finance/economics background – I was always a capitalist. And, I have both very wealthy friends and very poor friends. But something as gone very wrong. This is no longer capitalism – this is elitism and anarchy. Is not what capitalism ever intended. It is out of control – and will cause long lasting damage to the U.S. I have discussed this with professors/journalists for quite some time. Problem is – politicians stand in the way of correction and most politicians – just do not have a clue – all they care about is being reelected. Time to throw the whole boat out.

    I have stood up for those at disadvantage since I was a teenager (and, unfortunately, that is a very long time). I greatly admire Neil for what he is doing – and, I do not understand why there are not more people like Neil that are speaking out. It is an atrocity that has occurred. And, we are having hearings??? WHY??? The government already knows what is going on – and they have done NOTHING.

    Infuriated over Scott Brown – and he represents the tea party??? Tea party – does not know what they are talking about. They are about — ME – ME — ME – and those that speak loudest have the biggest coffer.. Enough is enough.

    History repeats itself – it goes in cycles. We are in that repeating cycle. Depression? Jean Valjean??? Not a good future. But, power is still right now controlling – and, eventually, that power will fall. Their source of funds is dwindling – the majority people still drive an economy..

  4. Until the foreclosure crisis and the fraud associated with it is fixed, there will be more of the same. No jobs, no solvency, no future for America. The people who created this are traitors and need to be punished for it. What would happen if we put up a tariff structure against foreign imports? Is our government afraid that we would be attacked? Remember, because of our ridiculous debt, if we do not borrow from China, we can’t fight anybody. Our government is in collusion with the mega corporations to fleece America. The fleecing is almost complete, and the whole edifice will topple. I read a few months ago, I read about certain individuals in Russia forecasting that the US would break up into smaller countries, the SouthEast, the NorthEast, the mid West, the far west. I did not believe it then, but now, after what I have seen, I am beginning to believe it. http://www.challengingforeclosure.com Sirak@challengingforeclosure.com

  5. In 35 years I have trained and worked in the refrigeration,tool and die,body shop industries and all three have dried up to nothing.

  6. Anonymous

    How can people spend if they are unemployed underemployed and not getting lines of credit or credit cards?

    Also the myth of the rich getting richer. If the landlord cant collect rent from commercial retail or resident.
    How can they get richer?

    Only on paper. The rich are getting poorer buying worthless real estate.

    food for thought.

  7. Extended unemployment benefits now voted down – (thank Scott Brown) – as fight to keep Bush tax cuts for wealthy will likely prevail.

    The A Man – stock market has been going up due to Quantitative easing – the goal was to make Americans “more confident” – so they will spend – spend – spend…

    Oh – but I thought the government told us that we spent too much – we bought too much “house” — used house as an ATM??? Naughty…Naughty.

    New home buyers are being set up for the same Ponzi scheme we are victims of.

    Eule is right – as jobs went overseas – consumption became 70% of GDP. Banks had to find profit somewhere – and they found it in homes. And, Congress supported their every wish because they made us a consumption driven economy.

    What goes up – must come down.

  8. Stop buying imports. Use recycled products from thrift shops. Give up your STUFF. You only think you need all the stuff you have, and it only serves to enslave you more. We are slaves to our STUFF. We work all day so that we can have this STUFF. Are our lives so much better? The banks OWN us. Think about it, you work to pay all your bills. Your cell phone bill, your television bill, your radio bill, your new car bill, your mortgage, your dishwasher, microwave, mp3 player, video game, movies, washer and dryer, boats and MORE and MORE and MORE….STOP…if you didn’t need all that stuff would you still be a slave to this system? Basic human needs are food, shelter, clothing. How bout this…she makes clothes, he has chickens and eggs…maybe they could trade to serve their needs. No bank, no interest, no credit card, no money, better quality, better health, better life.

  9. http://www.scribd.com/doc/44600861/Roderick-Defer-Discharge-1-Chapter-7-3-8-10-fed-rule-bankruptcy-4004-c-2-1-U-S-C-%C2%A7-362-c-2-C

    I wanted to notice to people filing Chapter 7, and after the trustee abandons the property. One must ask to delay discharge Fed. Bank Rule 4004 (c) (2) under
    11 U.S.C. § 362(c)(2)(C). This is a critical point.

  10. It’s very simple. The .01% of the population who profit off of the toil of the rest of us have over-reached. They’ve equity stripped the entire populace. But in their greed they’ve stopped the engine that drives the machine. When the middle class stops, everything seizes up..

    Just like the fool who drowns while crossing the stream with gold bars in his pockets…..

    They can’t help themselves, greed is a powerful vice. Suffer the world for their childish ways.

    It doesn’t need to be this way. Debt and the Fed are the enemy. Root them out. Fight the bankers to the death. It’s the only way.

  11. Unemployment keeps on going up and so does the Stock Market. Housing prices keeps going down and the stock market goes up.

    am I missing something?

  12. As I said in the earlier post, I predict the layoff of bank employees will overwhelm the unemployment lines and create the largest jobless rate in all of history.

    Great point, The A Man !

  13. AS LONG AS OBAMA IS A BANK EMPLOYEE WE ARE DOOMED.

  14. All jobs moved to CHINA , and the only will comeback if the US companies get burned there .
    I hope every week is a China recall , may be that
    change our economy , and help to build new factory’s here. I don’t see that our Goverment found a solution for CHINA.
    In my business , I had the worst month in 24 years
    in September. It is not over .
    I am woundering , what will happening , if CHINA stop shipping products , whatever the reason is.
    Wallmart would be empty . Remember the drywall in new homes in Florida , today that would be better than foreclosure.

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