Anchor ads are not supported on this page.

4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs

Jobs Are the Missing Component

The job market was never expected to be as weak as it is today. At least, not by the federal government. The routine employment dips that have become part of the natural evolution of the nation’s economy were never supposed to last this long. But something funny happened on the way to the nation’s economic recovery. It didn’t happen the way the government expected it to.

Today, the nation’s unemployment rate is 9.6 percent, and 14.8 million people are counted as being out of work. More than 40 percent of those people have been out of work longer than six months.

In California, the job situation is even more dire. During the first seven years of the 21st Century, the state’s unemployment was as low as 4.8 percent and only hit 7 percent in one month. But since reaching the 7 percent mark again in June 2008, unemployment has been rampant in California.

Sponsored
Sponsored

It first hit double digits in February 2009 and has maintained that level for 22 straight months. This was never supposed to happen. At least the government didn’t think it would. But it has, and it’s going to linger with us for a long while.

The current recession has caused employers to eliminate 8.4 million jobs nationally over the past couple of years. Job loss during recessions is nothing new. It happens because companies struggle, downsize, and try to cut costs anyway they can. When things get better &mdash usually in a few months &mdash those same companies add jobs. That’s the historical track record of recessions in the United States.

But let’s look at today’s situation. Employers haven’t been eager to expand their payrolls even as the worst of the recession seems to be over. Only 1 million of the 8.4 million lost jobs have been recovered. So, what we are left with is an economy that is gradually gaining its footing but not adding jobs. That means the companies get healthier, shareholders get a better return on their investments, and individuals are left to scramble for the jobs that already exist.

The addition of jobs is a necessary component of any economic recovery. No one understands this better than the nation’s chief moneyman Ben Bernanke. As chairman of the Federal Reserve, it is Bernanke’s responsibility to make structural changes in our economy that promote a stable financial world. But Bernanke is not a magician. He can’t force employers to hire people. All he can do is guide the economy and hope that employers assume their traditional role and expand the economy by adding jobs.

The trouble is, times are different these days. Employers have been scared by the latest recession. Some have closed their doors and others &mdash giant corporations and tiny mom and pops &mdash have struggled to remain in business. Those factors have caused them to be a little less trusting of the economy and more cautious when it comes to adding jobs.

Bernanke says this creates a frustrating scenario for economists and lawmakers. He says the economy may be recovering slowly, but if employers don’t hire more workers, the recession will linger on, perhaps for years.

Today, California has civilian employment of 15.9 million workers, nearly the same number of jobs it had in January 2000. Jobs are the missing component in this economic recovery. But that’s not what the government expected.

Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Tyler Farr, Blue Water Film Festival, Mustache Bash

Events March 21-March 23, 2024
Next Article

Taco Taco Poway still has 99-cent fish tacos

Tacotopia prizewinner is well known among Powegians

The job market was never expected to be as weak as it is today. At least, not by the federal government. The routine employment dips that have become part of the natural evolution of the nation’s economy were never supposed to last this long. But something funny happened on the way to the nation’s economic recovery. It didn’t happen the way the government expected it to.

Today, the nation’s unemployment rate is 9.6 percent, and 14.8 million people are counted as being out of work. More than 40 percent of those people have been out of work longer than six months.

In California, the job situation is even more dire. During the first seven years of the 21st Century, the state’s unemployment was as low as 4.8 percent and only hit 7 percent in one month. But since reaching the 7 percent mark again in June 2008, unemployment has been rampant in California.

Sponsored
Sponsored

It first hit double digits in February 2009 and has maintained that level for 22 straight months. This was never supposed to happen. At least the government didn’t think it would. But it has, and it’s going to linger with us for a long while.

The current recession has caused employers to eliminate 8.4 million jobs nationally over the past couple of years. Job loss during recessions is nothing new. It happens because companies struggle, downsize, and try to cut costs anyway they can. When things get better &mdash usually in a few months &mdash those same companies add jobs. That’s the historical track record of recessions in the United States.

But let’s look at today’s situation. Employers haven’t been eager to expand their payrolls even as the worst of the recession seems to be over. Only 1 million of the 8.4 million lost jobs have been recovered. So, what we are left with is an economy that is gradually gaining its footing but not adding jobs. That means the companies get healthier, shareholders get a better return on their investments, and individuals are left to scramble for the jobs that already exist.

The addition of jobs is a necessary component of any economic recovery. No one understands this better than the nation’s chief moneyman Ben Bernanke. As chairman of the Federal Reserve, it is Bernanke’s responsibility to make structural changes in our economy that promote a stable financial world. But Bernanke is not a magician. He can’t force employers to hire people. All he can do is guide the economy and hope that employers assume their traditional role and expand the economy by adding jobs.

The trouble is, times are different these days. Employers have been scared by the latest recession. Some have closed their doors and others &mdash giant corporations and tiny mom and pops &mdash have struggled to remain in business. Those factors have caused them to be a little less trusting of the economy and more cautious when it comes to adding jobs.

Bernanke says this creates a frustrating scenario for economists and lawmakers. He says the economy may be recovering slowly, but if employers don’t hire more workers, the recession will linger on, perhaps for years.

Today, California has civilian employment of 15.9 million workers, nearly the same number of jobs it had in January 2000. Jobs are the missing component in this economic recovery. But that’s not what the government expected.

Comments
Sponsored
Here's something you might be interested in.
Submit a free classified
or view all
Previous article

Celebrate Holi, Borrego Springs Music Festival

Events March 23-March 27, 2024
Next Article

Not enough Readers in Mission Beach

Mayor Todd Gloria's skin color
Comments
Ask a Hipster — Advice you didn't know you needed Big Screen — Movie commentary Blurt — Music's inside track Booze News — San Diego spirits Classical Music — Immortal beauty Classifieds — Free and easy Cover Stories — Front-page features Drinks All Around — Bartenders' drink recipes Excerpts — Literary and spiritual excerpts Feast! — Food & drink reviews Feature Stories — Local news & stories Fishing Report — What’s getting hooked from ship and shore From the Archives — Spotlight on the past Golden Dreams — Talk of the town The Gonzo Report — Making the musical scene, or at least reporting from it Letters — Our inbox Movies@Home — Local movie buffs share favorites Movie Reviews — Our critics' picks and pans Musician Interviews — Up close with local artists Neighborhood News from Stringers — Hyperlocal news News Ticker — News & politics Obermeyer — San Diego politics illustrated Outdoors — Weekly changes in flora and fauna Overheard in San Diego — Eavesdropping illustrated Poetry — The old and the new Reader Travel — Travel section built by travelers Reading — The hunt for intellectuals Roam-O-Rama — SoCal's best hiking/biking trails San Diego Beer — Inside San Diego suds SD on the QT — Almost factual news Sheep and Goats — Places of worship Special Issues — The best of Street Style — San Diego streets have style Surf Diego — Real stories from those braving the waves Theater — On stage in San Diego this week Tin Fork — Silver spoon alternative Under the Radar — Matt Potter's undercover work Unforgettable — Long-ago San Diego Unreal Estate — San Diego's priciest pads Your Week — Daily event picks
4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
Close

Anchor ads are not supported on this page.