Employers cut 524,000 jobs in the months of December, the latest report from the Bureau of Labor Statistics revealed Friday, Jan. 9th. Altogether the jobless rate jumped to 7.2 percent, the highest in 16 years.
Throughout 2008, the US economy shed more than 2.5 million jobs.
Manufacturing and construction jobs collapsed by 250,000 over the month. Over the course of 2008, factories laid off almost 800,000 workers. A small bump in public sector job growth in the month of December could not offset fully the loss of an estimate 693,000 private sector jobs last month.
African Americans faced a 11.9 percent unemployment rate, while Latinos saw 9.2 percent at the close of 2008.
Job insecurity grew in 2008 as well. The BLS report estimated that the number of people who completed temporary jobs grew by 2.7 million, while the number of long-term unemployed workers grew to 2.6 million, about double what it was at the beginning of the year.
The economic crisis is a "category 5," stated AFL-CIO President John Sweeney after the BLS report was released. Congress should "act urgently to enact an aggressive economic recovery program."
The sense of urgency was a shared sentiment expressed by President-elect Barack Obama in a major speech on the economy delivered on Thursday, Jan. 8 at George Mason University in Virginia.
In that speech, Obama stated, "I urge Congress to move as quickly as possible on behalf of the American people, for every day we wait or point fingers or drag our feet, more Americans will lose their jobs, more families will lose their savings, more dreams will be deferred and denied, and our nation will sink deeper into a crisis that at some point we may not be able to reverse."
Obama encouraged a considered debate on the recovery package, but insisted on speed and comprehensiveness.
Obama called for an economic recovery package that will "put people to work repairing crumbling roads, bridges and schools by eliminating the backlog of well-
planned, worthy and needed infrastructure projects," but will "also do more to retrofit America for a global economy."
Obama's plan covers releasing funds for infrastructure building and repair projects, modernizing the energy grid and investments in renewable energy resources, and expanding access to the Internet across the country. He called for new investments in science, research and technology.
In addition, the economic recovery act he has proposed would include funds for states to help them eliminate budget deficits in order to avoid deep cuts to health care and education programs.
For working families, Obama's plan would offer direct tax relief, as well as an extension of unemployment benefits and health care coverage for the growing numbers of long-term unemployed workers.
Obama sharply pointed to the Wall Street bailout as a big spending bill that has failed to "translate into more jobs, or higher incomes, or renewed confidence in our economy."
The President-elect did promise to use "our full arsenal of tools to get credit flowing again to families and businesses, while restoring confidence in our markets" and to help families families facing foreclosure keep their homes and pay their bills.
New regulatory oversight to prevent the actions by mortgage lenders, banks and investment firms that caused the financial crisis in the first place should be a part of the recovery program, Obama stated.
Agreeing with this program, Sweeney added that "longer-term solutions can help strengthen working families in a time of economic crisis. Broad-based economic changes must be made to ensure sustained economic growth and broadly shared prosperity," Sweeney said.
Specifically, Sweeney called for economic polices that reverse the trade deficit, guarantee affordable, universal health care to all, and ensure that workers can collectively bargain with employers for a better standard of living by passing the Employee Free Choice Act.
The battle lines for 2009 are being drawn. Working people have the chance to help build a broad majority of Americans for substantive change that will really improve all of our lives. Rather than sniping from the sidelines or promoting divisiveness, those who claim to speak on behalf of working people, as union members, health care activists, civil rights advocates, peace promoters, and champions for social justice, have a real opportunity this year to transform our country and not leave the business of change in the hands of the politicians.
