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Writers Articles And Opinions |
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06 June 2010
By Stephen Lendman
What
affects Illinois plagues the nation, the Bureau of
Labor Statistics reporting in January that:
"The
unemployment rate for young Americans has exploded to
52.2% - a post-World War II high, according to the
Labor Dept - meaning millions of Americans are staring
at the likelihood that their lifetime earning
potential will be diminished and, combined with the
predicted slow economic recovery, their transition
into productive members of society could be put on
hold for an extended period of time."
"The
number represents the flip-side to the Labor Dept's
report that the employment rate of 16-to-24 year olds
has eroded to 46.6 percent - the lowest ratio of
working young Americans in that age group, including
all but those in the military, since WWII."
The
Illinois Policy Institute says the state is "in a
fiscal meltdown that continues to spiral out of
control," exacerbated by the economic crisis, falling
tax revenues, and mismanagement in a state plagued by
corruption.
As a
result, it ranks in the bottom fifth of states by many
key measures, including its economic outlook; Gross
State Product growth; debt burden; cumulative per
capita income growth; cumulative non-farm employment
growth; net out-migration; and property, gasoline, and
sales tax burdens.
Unsurprisingly, the state's wealth has been declining.
At the same time, it's budget crisis has increased
because of an expected $13 billion FY shortfall equal
to about half the state's operating budget - the
largest (on a per capita basis) of any state in
America, including California.
To
address it, huge cuts are proposed, including over
$1.3 billion from education from primary through
university levels. An estimated 17,000 teachers will
be laid off, exacerbating an already dire situation,
impacting students by school closures, larger class
sizes, eliminated programs, and sharp tuition and fee
increases at state colleges and universities, the
University of Illinois considering a 20% hike besides
large cuts in its operating budget.
As a
result in January, it furloughed over 11,000
administrators, academic professionals and faculty at
Champaign-Urbana, Springfield and Chicago campuses,
requiring them to take 10 unpaid days of leave by
June. More expected cuts will follow given the
university's budget shortfall, one expected to grow,
not diminish.
In
Chicago and Illinois, planned destruction of public
education is part of a national effort to privatize it
to deny millions of working class youths a chance for
a better life, a decent job, or perhaps any at a time
half the nation's young people are unemployed.
The
results show up in Northeastern University's Center
for Labor Market Studies (CLMS) January 2010 report
titled, "The Lost Decade for Teen and Young Adult
Employment in Illinois: The Current Depression in the
Labor Market for 16 - 24 Year Olds in the Nation and
State."
It
shows that youths failed to participate in the
mid-2003 - 2007 labor market recovery, after which
their employment rate fell sharply through 2009. Teens
(aged 16 - 19) fared worst of all. In 2000, when
employment peaked, their employment/population ratio
stood at 45.2%. By 2003, it was 36.8%, then 36.4% in
2005. At the start of the late 2007 economic decline,
it was 34.6%, the lowest figure since WW II, and by
November 2009, it was 26.2%, overall the largest
employment decline of an age group.
Young 20 - 24 year olds have also been severely
impacted, especially men, Blacks, Hispanics, and
non-college grads.
Since 2000, teen employment dropped by "20 percentage
points" and for 20 - 24 year olds by 13 points,
numbers reflecting depression, not recession.
While in 2000, Illinois teens were 1.4 times as likely
to be working as adults 55 and older (48% v. 34%).
Over the past decade, it shifted dramatically to 40%
for older workers to 28% for teens, Blacks faring
worst with only 12% in Illinois employed. A similar
pattern occurred nationally, impacting the long-term
employability of those affected, especially for the
state and nation's poorest and most disadvantaged.
Chicago was especially hard hit given its large Black
population. In the metropolitan area in 2009, suburban
teens were 1.6 times more likely to be working than
their city counterparts - 25% v. 16%, and teens from
low income families fared worst.
Young adults also fared poorly. In 2000, 72% of 20 -
24 year olds in Illinois had a job. By November 2009,
it was 60%, down 12 points. Blacks were especially
impacted with only one in four finding work in 2009.
In metropolitan Chicago, suburban employment dropped
by 16 points. In the city, it was 19 points - "the
equivalent of a Great Depression era, especially for
young Black men."
The
ability to stay actively engaged in school, training,
and/or employment is key to future labor market and
earning success. Underutilized youths run serious
risks of long-term unemployment and poverty, a growing
problem in Illinois and nationally.
The
CLMS conclusion is that Illinois and Chicago teens and
young adults "have been massively left behind in the
labor market," given the state's historic low
employment rate, especially for teens.
Facing likely high jobless rates through at least 2015
or longer, teens and young adults can expect "an
unmitigated disaster" in their job market and future
prospects.
Short of massive federal intervention, nothing
envisioned offers hope, especially given the
administration's penchant for budget restraint, except
for Wall Street, militarism, homeland security, and
debt service. As a result, a generation of youths is
being trashed, discarded for other priorities.
Chicago's South Side Dilemma -
America's Second Highest Unemployment Rate
On
November 18, 2009, the Chicago Reporter covered the
problem based on 2008 US Census Bureau American
Community Survey data. It showed that the collective
unemployment rate for the Auburn Gresham, Englewood,
Washington Heights and West Englewood neighborhoods
was 23.2%. Only Detroit's northeast corner was higher
at 28.5%, and these figures exclude:
--
discouraged workers who want jobs but gave up looking;
--
"marginally attached workers" not actively looking
after unsuccessfully seeking work in the past 12
months; and
--
part timers seeking full-time employment but can't
find it.
Including these categories, South Side Chicago,
Detroit and other community unemployment rates would
be double or more the official figures. Exclude the
bogus birth-death ratio, and the numbers are higher -
at true depth of depression levels in communities
throughout America, including Chicago's West and South
Sides (with large Black and Latino populations in
traditionally poor neighborhoods), facing grim
prospects for many years to come, on their own and out
of luck.
A New Worktrends Study
Rutgers University Edward J. Bloustein School of
Planning and Public Policy's May 2010 report titled,
"No End in Sight: The Agony of Prolonged
Unemployment," is based on a March 2010 survey
addressing the issue - systemic, growing and
endangering the nation. Its findings include the
following:
--
of those unemployed since August 2009, 21% found work
by March 2010, 67% are still unemployed and looking,
and the remaining 12% gave up for lack of success or
pursued other directions including school;
--
younger respondents had better success than older
ones;
--
women fared better than men;
--
Blacks, Hispanics and those least educated were
especially impacted;
--
of the 21% who found work, only 13% got full-time
jobs;
--
65% of those finding employment looked for at least
seven months; another 28% for over a year;
--
61% settled for less than they wanted, saying it was
"something to get you by while (looking) for something
better;"
--
more than half of the newly reemployed took a pay cut;
for about one-fourth of them, it was significant, and
one-third lost benefits;
-- a
clear trend was the pessimism among long-term job
seekers, and their belief that they'll never again
have employment as good as what they lost;
--
many of the unemployed have no safety net;
--
only 30% have unemployment insurance (UI) or health
care coverage;
--
33% have neither;
--
21% have UI but no health coverage;
--
16% have health coverage but no UI;
--
"The Great Recession has touched almost everyone;"
--
over three-fourths of the unemployed said the economic
situation was having a major impact on them and their
families; examples given were reduced spending,
increased borrowing, missed debt payments, less
medical care, and bankruptcy;
--
About 70% had to tap their retirement or other savings
to get by, but it's not enough;
--
long-term unemployment caused physical and emotional
stress, isolation, and for some, substance abuse;
--
nearly two-thirds believe the economy is undergoing
fundamental, long-lasting change for the worst;
--
61% rated the Obama administration's handling of the
economy fair to poor; 68% said fair or poor on its
handling of unemployment; and
--
half of respondents believe it's government's
responsibility to help the unemployed, UI being the
main support.
Despite reported economic improvement, more illusion
than fact, "millions of unemployed Americans see no
end to the Great Recession that wrecked their finances
and threw their lives into turmoil." The unemployed
understand things better than media pundits or
political optimists, unable to fool all the people all
the time or those unemployed any time.
As a
result, they're angry, pessimistic, wonder what's
next, and say what's needed are government efforts to
create jobs, not cut taxes for business and the rich,
the standard formula since Reagan under Republicans or
Democrats, governing the same way or worse.
It's
why poverty, hunger, homelessness and despair affect
millions in the country. Food stamp usage is at record
highs, and millions have no health coverage because
the state of working America is dire and worsening for
millions facing greater than ever challenges on their
own with government indifferent to their plight. Is it
any wonder they're disillusioned, pessimistic, fed up
and angry!
Stephen Lendman lives in Chicago and can be reached at
lendmanstephen@sbcglobal.net. Also visit his blog site
at sjlendman.blogspot.com and listen to cutting-edge
discussions with distinguished guests on the
Progressive Radio News Hour on the Progressive Radio
Network Thursdays at 10AM US Central time and
Saturdays and Sundays at noon. All programs are
archived for easy listening.
http://www.progressiveradionetwork.com/the-progressive-news-hour/.
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