It’s Still a Stagnant Recovery: Employment Report for June, 2013

The June unemployment situation, as depicted by the Bureau of Labor Statistics in its July 5 report, looks like May redux: Unemployment rate stuck at 7.6 percent; number of persons unemployed stuck at 11.8 million; number of persons unemployed for at least 27 weeks stuck at about 4.3 million or 36.7 percrnt of all unemployed persons. Even the increase in the number of persons employed (195,000 vs. 175,000 in May) was far too small to force a change in the long-term trajectory of job creation, which has averaged 182,000 per month over the last year.

This Lesser Depression has, indeed, been devastating, especially for the less educated, for African Americans, and for Latinos. After four full years of economic “recovery” the number of unemployed persons is still 5 million greater than it would be if the unemployment rate had dropped by now to its eve-of-Lesser Depression low of 4.4 percent (May, 2007.) And it should be noted that 4.4 percent unemployment is higher than its historic lows and probably does not represent “full employment.”

Anything close to full recovery is looking less and less likely. Allowing for population growth, which should supply the labor force with about 115,000 new job seekers each month, June’s 195,000 increase in the number of job-holders nets out to about 80,000 more than what is necessary to accommodate the new entrants. At that rate it will take about five more years to bring the official unemployment rate down to 4.4 percent. 

Further, the composition of the jobs-added category gives reason for concern. Manufacturing, which pays relatively well, actually lost jobs in June, whereas the largest gains were registered in the leisure and hospitality industries, in the health care and social assistance industries, and in temping. All of these latter are low-wage work. Taken together, they account for about 56 percent of June’s job growth, consistent with the pattern of replacing good jobs with bad jobs that has characterized the recovery.  Job growth at the very bottom of the wage scale will do little to build aggregate demand for goods and services to levels that would encourage employment-increasing investment by the private sector.

Dreadful as the Lesser Depression has been, the spread of the financial collapse to the real economy only accelerated trends that had already been undermining large segments of the working population for some years. Job creation, especially the creation of jobs with decent remuneration packages and working conditions, had withered for years under the neoliberal assault and its obsession with “lean production” and off-shoring.  Profits in the real economy rose, but largely because labor costs fell. 

In fact, there were fewer and fewer opportunities for profitable investment in decent jobs in the real economy. Investment went increasingly into finance, where profits and lucrative employment rose dramatically, especially on the housing bubble (which did support construction jobs for a time) but less and less of it went into good, permanent jobs that were accessible to the working class. 

Alarmed by these trends, about half a dozen years ago the Chicago Political Economics Group (CPEG) began to focus on the falling percentage of the working-age population that is employed. Because of weak job creation in the private sector, we saw that from 2000 until the downturn of the economy in 2007 the percentage fell by 1.4 percent, from 64.4 to 63 percent. That 1.4 percent translated into almost 3.25 million workers pushed into unemployment even in supposedly “good” times. Since then, an additional 10.6 million workers have suffered the same fate; employment fell after the financial collapse and has increased during the recovery not even as rapidly as the working age population has grown.

CPEG’s research led us to conclude that it made no sense to expect the private sector to reverse course and create enough good jobs to employ the people whom it had been discarding. We saw, and continue to see, a pressing need for a large, sustained public jobs program. (See “A Permanent Jobs Program for the U.S.”, cpegonline.org) That need was apparent before the onset of the Lesser Depression. It is even more apparent now as the failed recovery drags on.

The Humphrey-Hawkins 21st Century Full Employment and Training Act (HR 1000) now has 36 co-sponsors. Is your representative one of them?    

Sid Hollander is a founding member of the Chicago Political Economy Group and a long-time member of Chicago DSA. He is retired from legislative work at the City of Chicago Department of Human Services and an active member of Chicago-based social justice organizations.

Grassroots Fundraising: Paying for the Revolution (9pm Eastern)

June 23, 2017
· 46 rsvps

Are you new to socialist organizing? Or after many years do you still struggle, raising money from members when you need it but without a steady flow of income or budget to plan ahead? Are you afraid to tackle fundraising because it seems so daunting or you are uncomfortable asking people for money?

In this webinar, you will learn why fundraising is organizing, and how to do it – face to face, through fundraising events, and other ideas.

Join us for our latest organizing training for democratic socialist activists: DSA’s (Virtual) Little Red Schoolhouse.

Instructor:

  • Steve Max, DSA Vice Chair and one of the founders of the legendary community organizing school, The Midwest Academy

Training Details:

  1. Workshops are free for any DSA member in good standing.
  2. You need a computer with good internet access.
  3. Your computer must have preferably headphones or else speakers; you can speak thru a mic or use chat to "speak".
  4. If you have questions, contact Theresa Alt talt@igc.org.
  5. If you have very technical questions, contact Tony Schmitt schmittaj@gmail.com 608-355-6568.
  6. Participation requires that you register at least 21 hours in advance -- by midnight Thursday for Friday's webinar.

NOTE: This training is scheduled for 9:00pm Eastern Time (8pm Central, 7pm Mountain, 6pm Pacific, 5 pm Alaska, 3 pm Hawaii).

Introduction to Socialist Feminism Call

June 27, 2017
· 68 rsvps

Join DSA activist Judith Gardiner to explore “socialist feminism.” How does it differ from other forms of feminism? How and when did it develop? What does it mean for our activism? 9 pm ET, 8 pm CT, 7 pm MT, 6 pm PT.

Data Security for DSA Members

June 27, 2017

Ack! I googled myself and didn't like what I found!

WHAT: A DSA Webinar about "Doxing"
WHEN: 9PM EST, 6PM PST

We're proud of our organizing, and chapter work is transparent for both political and practical reasons. However, there are basic precautions you can take in this time of rapid DSA growth to protect your privacy.

Key Wiki is a website that meticulously documents DSA activity and posts it for the world to see. If you're an active DSA member, likely your name is on their website. This is an example of "doxing".

As DSA becomes larger, more visible, and more powerful, we might expect that more websites like this will pop up, and more of our members' information might be posted publicly on the web.

Join a live webinar on Tuesday, June 27 with data security expert Alison Macrina, to learn:

  1. what is doxing? with examples and ways to prevent it
  2. how to keep your passwords strong and your data secure
  3. where to find your personal info on the internet and how to get it removed
  4. social media best practices for DSA organizers
  5. what to do if you've already been doxed

Zoom Link: https://zoom.us/j/9173276528

Call-in Info: +1 408 638 0968
Meeting ID: 917 327 6528

Film Discussion: Pride

September 10, 2017
· 11 rsvps

Join DSA members Eric Brasure and Brendan Hamill to discuss the British film Pride (2014). It’s 1984, British coal miners are on strike, and a group of gays and lesbians in London bring the queer community together to support the miners in their fight. Based on the true story of Lesbians and Gays Support the Miners. The film is available for rent on YouTube, Amazon, and iTunes. 8 ET/7 CT/6 MT/5 PT.

Film Discussion: Union Maids

September 24, 2017
· 8 rsvps

 

Join DSA member and labor historian Susan Hirsch in discussing Union Maids (1976). Nominated for an Academy Award, this documentary follows three Chicago labor organizers (Kate Hyndman, Stella Nowicki, and Sylvia Woods) active beginning in the 1930s. The filmmakers were members of the New American Movement (a precursor of DSA), and the late Vicki Starr (aka Stella Nowicki) was a longtime member of Chicago DSA and the Chicago Women's Liberation Union. It’s available free on YouTube, though sound quality is poor. 8ET/7CT/6MT/5PT.