Bleak Employment Numbers Indicate Recession Is Worsening

With nearly 2 million jobs lost so far this year the prospect for any kind of economic recovery is bleak. Consumer demand for goods and services has plunged, corporate investment has tanked, the housing market is in a shambles, and automakers have been humbled into begging taxpayers for a bailout.

From the New York Times:

Workers Give Up
By David Leonhardt

How bad was today’s jobs report? The unemployment rate rose to 6.7 percent, its highest level since 1993 — and that understated the weakness in the labor market.

According to the Labor Department, the number of unemployed workers rose by 251,000 in November. But the number of people who were outside of the labor force — that is, neither working nor looking for work — rose by much more: 637,000. These people aren’t counted as unemployed in the government’s statistics, because they are not looking for work. Many of them, presumably, have stopped looking for work because they didn’t think they could find a good job. ...continue reading

Significantly, the loss of jobs has affected men, more than women, due largely to the heavy concentration of women in the healthcare field, education, and other social services.



From economist Dr. Mark Perry:

According to today's BLS report, the U.S. economy has lost 2.352 million jobs in the last year (Nov. 2007 to Nov. 2008). Further analysis shows that 82% of the job losses (1.932 million) were jobs held by males, and only 18% of jobs losses (430,000) were jobs held by females (see top chart above). Further, the November unemployment rate for men is 7.2% vs. only 6% for women, and the gap in jobless rates between men and women has been increasing for the last six months (see bottom chart above).

What's going on?

According to this May 2008 BusinessWeek article:

Men have the misfortune of being concentrated in the two sectors that are doing the worst: manufacturing (70% male) and construction (88% male). Women are concentrated in sectors that are still growing, such as education and health care (77% female). ...continue reading

President-elect Obama's desire to provide economic stimulus by investing heavily in infrastructure should provide a boost to employment in the construction and manufacturing sectors. In addition, it's been reported that he wants to provide some relief to states in the form of increased Medicaid funding and education funding, which would likely aid women.