Tomorrow, the Illinois Department of Employment Security will release the state's June unemployment rate and the numbers are anticipated to be ugly. The current national unemployment rate hovers around 9.5 percent, up slightly from May. The situation is worse in the Land of Lincoln, though, where the jobless figure already surpassed 10 percent last month.
But as we pointed out last year, the government's unemployment figures don't tell the full story about the plight of American workers. The Bureau of Labor Statistics, for example, doesn't take into account part-timers who want full-time jobs or the jobless who want work but are not actively seeking employment. By not factoring in this so-called underemployment, they are likely obscuring the depth of the recession.
When those factors were considered last September, Illinois' underemployment rate (which combines the typical unemployment rate with those broader statistics) sat at 11 percent, its highest level in more than 14 years. In the nine month since, underemployment has grown by an additional 5 percentage points, according to a New York Times analysis published today. The Times' David Leonhardt's writes that it might not improve quickly, either:
Various indicators suggest the nation’s economic output could start growing again this summer, which would mean the end of the recession. But the economy will still be weighed down by troubled credit markets and huge household debts. So it may be awhile before growth is fast enough to persuade companies to hire large numbers of workers.
Leonhardt notes that the stimulus bill is helping, particularly by extending jobless benefits and preventing some layoffs by state and local governments. Gov. Pat Quinn's estimates that the capital bill he signed earlier this week will create over 400,000 jobs as well. But these figures underlie how important a sustainable budget solution really is. Social service jobs are just as important as construction jobs. Without more revenue, plenty of jobs in the former sector will be shed, counteracting growth in the latter.
Comments
Valerie F. Leonard (not verified) on Wed, 07/15/2009 - 11:07
Thanks for bringing this issue to light. As bad as it is for the nation and the State, I can assure you it's worse in low-moderate income African American communities. The North Lawndale community in Chicago experienced a 23% unemployment rate in 2005. I shudder to think what it could be now, or what the underemployment rate (working poor) could be now.
Even so, I am very happy for the Capital Bill. My only concern is the Public Works designation will make construction jobs subject to the Davis-Bacon Act, which favors trade unions. While I am a union supporter, I'm concerned that African Americans, who are underrepresented in the trade unions, will not gain access to construction jobs or apprenticeships, which tend to pay higher wages than service sector jobs.
Michael (not verified) on Wed, 07/15/2009 - 14:00
Unemployment is also high in the Golden State, yet I think there is so much opportunity in the more unconventional ways of making a living!
There is a lot one can do, we don't have to be at the mercy of gov't or companies!
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