The Post reports that we can expect many more lost jobs in the coming months. There are fewer new jobs available and many companies are announcing either lay-offs or hiring freezes, even as unemployment claims reach a seven-year high. Another indicator, underemployment, gives us the full picture of the problem. Check out this EPI graphic for a full picture:
The involuntary part-time category is particularly dispiriting: these are people who want to work full time to support themselves and their families but can find an opportunity. A big part of the responsible American dream is saying, if you want to work for prosperity, you can. These people can't even find an opportunity to work! EPI uses the data to make an argument for new, job creating stimulus, and it's a good argument, but one that will unfortunately have to wait for a lame-duck session or January 2009. (The good news is that Fed Chair Ben Bernanke supports a stimulus, so perhaps the Bush administration can be pushed to embrace the idea.)
Another sad personal indicator is that people in my age cohort (recent college graduates) are being laid off; I've recently heard from two friends a year or two older than I am who have just lost their first post-graduate jobs in layoffs. First in, first out, I suppose.
-- Tim Fernholz
