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AFL-CIO Now

Jobless Rate Worsens to 9.1 Percent with Anemic Job Growth

The nation’s unemployment rate ticked up to 9.1 percent in May, a slight increase from April’s 9 percent rate, according to the latest government figures. The monthly payroll survey shows the economy added just 54,000 net jobs overall last month, down from the average 220,000 in the previous three months. While the private sector added 83,000 jobs, even that anemic growth was tempered by disappearing government jobs. Local government employment has dropped by 446,000 since its peak in September 2008.

Today’s numbers follow Wednesday’s announcement that the week ending May 28 was the eighth straight week that more than 400,000 people filed for first-time unemployment benefits.  

Manufacturing saw a loss of 5,000 jobs, after April’s addition of 29,000. Overall, there has been a small net gain of manufacturing jobs after hitting a low-point in December 2009.  Since January 2010, the United States has added back roughly 243,000 manufacturing jobs through last month. But there is still a net loss of more than 800,000 manufacturing jobs since January 2009. 

Scott Paul, executive director of the Alliance for American Manufacturing (AAM), says:

This slowdown shows that we cannot take growth in manufacturing for granted. Our nation urgently needs a jobs and manufacturing strategy, yet it is nowhere on the agenda of this Congress. We have put together a business-labor plan that enjoys broad support from voters. Now we hope Washington will start to listen. We will never rebuild our economy without strengthening manufacturing in our nation.

Young people (24.2 percent), African Americans (16.2 percent) and Hispanics (11.9 percent) continue to suffer the highest jobless rates.

The job gains were spread across industries, including accounting and bookkeeping services (18,000), health care (17,000), management and technical services (11,000), computer design and services (8,000) and mining (7,000).    

Economic Policy Institute (EPI) economist Heidi Shierholz says today’s report shows that:

The U.S. workforce needs the pace of job growth to accelerate dramatically in order to re-establish full employment within any reasonable timeframe, and instead, the recovery is on pause.

AFL-CIO President Richard Trumka says, ”The gain of a meager 54,000 jobs in May is a sign of real danger for working families and for the recovery,” and should be a warning to those on the campaign trail.

Let it be clear to our leaders and those seeking office: No other issue than the jobs crisis will be more dominant in the minds of working people come next November. Gaining the support of working families will mean showing real political courage, not playing more political games.

In the video above from the Washington State Labor Council (WSLC), building and construction trades workers in Seattle—where the unemployment rate in the trades is about 60 percent—talk about their struggles. One worker says:

You feel kind of disheartened because you’re not contributing enough and then you’re scuffling trying to take care of your own financial burdens and trying to keep your head afloat until things get better.  All of us would like to be contributing better and taking care of our families better right now.

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