17,000 Jobs Cut in January—First Such Drop in Four Years

[Omaha Steve]

http://blog.aflcio.org/2008/02/01/17000-jobs-cut-in-januaryfirst-such-drop-in-four-years/

by James Parks, Feb 1, 2008

The 17,000 people whose jobs were cut last month and the 375,000 people who filed initial claims for unemployment last week are another sign that the economy’s “fundamentals” are not as sound as President Bush asserts.

Today’s unemployment figures released by the U.S. Bureau of Labor Statistics show the first drop in employment in four years, an important sign that the labor market is still weakening. The weak report increases the likelihood that the economy is already in recession. And a whopping 69,000 more people last week filed for unemployment benefits than the week before, the largest jump during any week since Hurricane Katrina.

Worse, more people are out of jobs longer. The rate of long-term unemployment is 65 percent higher today then it was at the beginning of the last recession: 18.3 percent of jobless workers today have been unemployed for more than six months.

This underscores the need for any economic stimulus package to include an extension of unemployment benefits. The unemployment figure for January dipped very slightly to 4.9 percent. However, together with weak wage growth, a drop in average weekly hours worked, and job losses across many sectors, the relatively small drop in unemployment is little cause for comfort.

AFL-CIO President John Sweeney says:

The weakening job market is a kick in the stomach to working families already suffering a generation-long stagnation of wages and rising insecurity. With energy costs rising, health care expenses spiraling out of control and the housing crisis in full swing, Congress and the President must take swift action to provide relief to those who need it most.

The labor report shows job losses were widespread. Manufacturers, construction firms, government and a variety of professional and business services eliminated jobs in January.

Wages also grew at a slower pace last month. Average hourly earnings for jobholders rose to $17.75 in January, a 0.2 percent increase from the previous month. It was half the increase logged in December. In the past year, wages have increased 3.7 percent, not enough to keep up with inflation.

[Sarah Ibarruri]

1. Even right wingnuts are predicting a depression. Bush has destroyed this country. nt

[pscot]

2. This may be the first net loss in a while

but we've been bleeding manufacturing jobs at a rate of 15000 to 20000 per month.

[OhioChick]

3. I Believe That

This is Only the Beginning.