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Monday, November 30th, 2009   6:34 am | Author: freethinker | Politics/Government, Work/Employment |
Tags: government, jobs, Krugman
Currently the unemployment rate is at 10.2% but the creation of jobs does not seem to be a top priority for the government.
In recent weeks most analysts and economists agreed that the recession has bottomed out and the trajectory for the economy should be upwards. Although the recovery may be shallow and slow for the next few years.
The problem is that job creation seems to be lost with all the exuberance that the recession has come to an end.
While the top priority at the Federal, State and Local level should be the creation of jobs attention seems to be drifting away.
In his latest column in the NYT, Paul Krugman points out that “If you’re looking for a job right now, your prospects are terrible. There are six times as many Americans seeking work as there are job openings, and the average duration of unemployment — the time the average job-seeker has spent looking for work — is more than six months, the highest level since the 1930s.”
“The long-term unemployed can lose their skills, and even when the economy recovers they tend to have difficulty finding a job, because they’re regarded as poor risks by potential employers. Meanwhile, students who graduate into a poor labor market start their careers at a huge disadvantage — and pay a price in lower earnings for their whole working lives. Failure to act on unemployment isn’t just cruel, it’s short-sighted.”
Krugman is advocating for an emergency jobs program instead of another stimulus. Krugman suggests that the program should include more aid to State and Local governments to offset the tax losses they are suffering which would in turn save jobs and stave off cutting of services, especially in education. At the Federal level the government can create more low level jobs until the job crises is over. “In a proposal to be released today, the Economic Policy Institute, a progressive think tank, argues that spending $40 billion a year for three years on public-service employment would create a million jobs”.
He also suggests that more incentives are needed to get private business to hire again.
As usual I think Krugman has the right ideas, unfortunately these will cost money which no one seems to be willing to spend.