The U.S. economy lost 467,000 jobs last month, and the unemployment rate rose to 9.5 percent, its highest level in 26 years, according to the latest Labor Department data. Job losses were heavy in the manufacturing sector, with another 136,000 good-paying jobs lost.
Revising U.S. trade policy and strengthening U.S. manufacturing is critical to any attempt at recovery.
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Jefferson, Wisconsin: Briggs & Stratton’s plants in Jefferson and Watertown, which manufacture all portable generator, home standby generator and pressure washer products for the company, will be closing their doors resulting in 430 jobs lost.
The American economy shed 467,000 jobs last month, and the unemployment rate rose to 9.5 percent, its highest level in 26 years, the Labor Department reported on Thursday. Job losses were widespread among the construction, manufacturing and business and professional services sectors.
19 months into the recession, plenty of economic indicators are still getting worse. Inventories fell yet again, orders are still drying up, and companies that make things consumers want are still uniformly gloomy. A survey of US manufacturing conditions from the Institute of Supply Management reveals that manufacturers are far from cosy.
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Rep. Mike Michaud (D-Maine) has introduced the Trade Reform, Accountability, Development and Employment (TRADE) Act of 2009 which calls on the president to submit a plan to renegotiate existing trade deals, as well as incorporating benchmarks that Congress would set on various issues.
Over 100 House Democrats, including nine committee chairmen, have already co-sponsored the bill, which also calls for a new “fast-track” law that would require Congress to vote in favor of a new trade agreement before the president offers can sign it.
Rep. Michaud said the bill is “consistent with what the president said he would do before he was elected.”
What ManufactureThis finds interesting is that the bill, like the Administration’s recent initation of a WTO case against China, reflects a potentially growing awareness of just how seriously U.S. trade policy needs to be revised in order to rebuild U.S. manufacturing. The U.S. has lost more than 4 million jobs in this decade, and has fallen below 1998 production levels. It’s good to Washintgton getting serious about addressing these problems.
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On Monday night, the Reading, Pennsylvania City Council passed a Buy America resolution. Local coordinator Carl Ramich was a driving force in pushing the council to consider the resolution.
To date, more than 500 state and local governments have passed Buy America resolutions, including the Pennsylvania House (and 72 other Pennsylvania city governments).
The reason for pushing these resolutions is that earlier this year Congress passed a stimulus bill that included Buy American provisions. A number of groups have lobbied to oppose these provisions. In order to make sure that state and local governments follow through on implementing Buy America policy, AAM field coordinators have conducted an ongoing campaign to make certain that state and local governments spend both stimulus funds and taxpayer money on American-made products and services when possible.
Read more about Buy America by clicking here.
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AAM Indiana Field Coordinator Rachel Bennett Steury checked in with some interesting news from the field:
“I went to a meeting in Fort Wayne last week that I’d like to tell you about. Folks in the Northeast Indiana Central Labor Council have developed relationships all over the globe; helping those in need or collaborating on important projects for working people. Last week Barbara Ehrenreich came to town to meet with us about what’s going on in Northeast Indiana because of the economy. Barbara Ehrenreich is the author of thirteen books, including the New York Times bestseller ‘Nickel and Dimed.’ She is a contributor to the New York Times, Harpers, and the Progressive, she is also a contributing writer to Time magazine. She is a true friend of American workers and to the Hoosiers who know her.
“Barbara is writing a series of op-ed’s for the New York Times examining how the recession is affecting those who were already poor before the recession. To read Barbara’s first piece, click here). There were over 45 folks who joined the discussion in Fort Wayne last week, most somehow or another affected by job loss. We spent about two hours talking with folks testifying to their experiences with reduced work weeks, lay-off, shut downs, and how their families are coping. We also talked about the horrendous deficiencies in Indiana’s unemployment system. Some talked about moving in with family members or what steps community groups are taking to lend a hand. Others had awfully sad stories of losing their job and benefits one week and having a heart attack the next. One woman reduced to working just 8 hours a week is joining the army, taking her daughter and husband on the road to whatever military base they get sent to.
“I went to the meeting because I wanted to get an understanding of all the issues that local folks are experiencing. Not to mention that my family is reliant on the system right now. Between me and my parents, my husband and his parents, I am literally the only one with a full-time job. My mother-in-law joined me and joined in the discussion and felt a sense of comradeship when we left. Being out of work does something to you mentally. Somehow it’s customary to blame yourself, as if you somehow caused the demise of your own employment. That is why the Central Labor Council here created an alliance of folks who share this common dilemma: it’s called the Unemployed and Anxiously Employed Workers Initiative (UAEWI) and they have been doing great things, working together to try and make the system work for workers: see this article.
“Watch for Barbara’s series in the New York Times and look for the UAEWI to do great things in Northeast Indiana.”
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Yesterday, ManufactureThis took a look at the large increase in unemployment from April 2009 to May 2009. Today we thought we spotlight the huge, and very troubling, rise in state unemployment rates from May 2008 to May 2009. The results are stunning; some states, like Indiana, actually saw their unemployment rate double in the span of one year.
State unemployment rate changes from May 2008 to May 2009, seasonally adjusted:
State | May | May | rate change(preliminary)
| 2008 | 2009(p) |
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Alabama ……………………| 4.7 | 9.8 | 5.1
Alaska …………………….| 6.6 | 8.4 | 1.8
Arizona ……………………| 5.2 | 8.2 | 3.0
Arkansas …………………..| 4.9 | 7.0 | 2.1
California …………………| 6.8 | 11.5 | 4.7
Colorado …………………..| 4.7 | 7.6 | 2.9
Connecticut ………………..| 5.4 | 8.0 | 2.6
Delaware …………………..| 4.4 | 8.1 | 3.7
District of Columbia ………..| 6.6 | 10.7 | 4.1
Florida ……………………| 5.8 | 10.2 | 4.4
Georgia ……………………| 5.9 | 9.7 | 3.8
Hawaii …………………….| 3.6 | 7.4 | 3.8
Idaho ……………………..| 4.5 | 7.8 | 3.3
Illinois …………………..| 6.4 | 10.1 | 3.7
Indiana ……………………| 5.3 | 10.6 | 5.3
Iowa ………………………| 4.0 | 5.8 | 1.8
Kansas …………………….| 4.3 | 7.0 | 2.7
Kentucky …………………..| 6.2 | 10.6 | 4.4
Louisiana ………………….| 4.1 | 6.6 | 2.5
Maine ……………………..| 5.1 | 8.3 | 3.2
Maryland …………………..| 4.1 | 7.2 | 3.1
Massachusetts ………………| 4.9 | 8.2 | 3.3
Michigan …………………..| 8.2 | 14.1 | 5.9
Minnesota ………………….| 5.3 | 8.2 | 2.9
Mississippi ………………..| 6.8 | 9.6 | 2.8
Missouri …………………..| 5.8 | 9.0 | 3.2
Montana ……………………| 4.3 | 6.3 | 2.0
Nebraska …………………..| 3.2 | 4.4 | 1.2
Nevada …………………….| 6.1 | 11.3 | 5.2
New Hampshire ………………| 3.7 | 6.5 | 2.8
New Jersey …………………| 5.1 | 8.8 | 3.7
New Mexico …………………| 4.0 | 6.5 | 2.5
New York …………………..| 5.2 | 8.2 | 3.0
North Carolina ……………..| 5.9 | 11.1 | 5.2
North Dakota ……………….| 3.1 | 4.4 | 1.3
Ohio ………………………| 6.3 | 10.8 | 4.5
Oklahoma …………………..| 3.6 | 6.3 | 2.7
Oregon …………………….| 5.7 | 12.4 | 6.7
Pennsylvania ……………….| 5.1 | 8.2 | 3.1
Rhode Island ……………….| 7.4 | 12.1 | 4.7
South Carolina ……………..| 6.3 | 12.1 | 5.8
South Dakota ……………….| 2.9 | 5.0 | 2.1
Tennessee ………………….| 6.2 | 10.7 | 4.5
Texas ……………………..| 4.7 | 7.1 | 2.4
Utah ………………………| 3.3 | 5.4 | 2.1
Vermont ……………………| 4.5 | 7.3 | 2.8
Virginia …………………..| 3.8 | 7.1 | 3.3
Washington …………………| 5.1 | 9.4 | 4.3
West Virginia ………………| 4.3 | 8.6 | 4.3
Wisconsin ………………….| 4.4 | 8.9 | 4.5
Wyoming ……………………| 3.0 | 5.0 | 2.0
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U.S. Unemployment Rates Rise From April 2009 to May 2009
This past Friday the U.S. Bureau of Labor Statistics reported on state unemployment rates in May. Rather disturbingly, unemployment rose in 48 states and DC in May. (Only Vermont and Nebraska avoided higher unemployment rates).
Manufacturing-centric Michigan’s unemployment rate has now climbed to 14.1% in May, and 13 states and Washington, DC now have unemployment rates that are over 10%. California alone lost 131,700 jobs in May.
Here’s what the monthly net changes look like in 18 states that are at or above the national average unemployment rate for May (of 9.4%)—their April / May unemployment rates:
Michigan 12.9% 14.1%
Oregon 11.8% 12.4%
South Carolina 11.4% 12.1%
Rhode Island 11.1% 12.1%
California 11.1% 11.5%
Nevada 10.6% 11.3%
North Carolina 10.7% 11.1%
Ohio 10.2% 10.8%
Tennessee 9.9% 10.7%
District of Columbia 9.9% 10.7%
Indiana 9.9% 10.6%
Kentucky 9.9% 10.6%
Florida 9.7% 10.2%
Illinois 9.4% 10.1%
Alabama 9.0% 9.8%
Georgia 9.2% 9.7%
Mississippi 9.1% 9.6%
Washington 9.0% 9.4%
U.S. Totals 8.9% 9.4%
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New Labor Department data for state-by-state employment shows job conditions deteriorating in all but two states. Michigan reports 14.1% unemployment.
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Tula Connell at AFL-CIO NOW has written a great piece that notes the strange loyalties of the U.S. Chamber of Commerce. She writes:
Ignoring, once more, that Buy American makes fundamental economic sense by ensuring at least some of our taxpayer bailout money is invested in American-made productions, the Chamber is siding with foreign embassies battling the Buy American provisions.
Read more by clicking here.
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The International Trade Commission rules that American tire companies and workers are being harmed by a surge of imports from China.
Could a deal be in the works with rural Democrats on climate change legislation?
“Cash-for-clunkers” plan soon to become law.
A look at how unions are looking at opportunities to create good jobs in clean energy.
