Labor Union Blog

The 437,000 jobs lost in June were spread throughout most U.S. industries, according to the Labor Department’s Bureau of Labor Statistics (BLS). 

Manufacturing employment fell by 136,000 in June, while employment in construction decreased by 79,000.  Job losses in professional and business services shot up in June, with the industry shedding 118,000 jobs. Retail trade employment was down by 21,000 in June.

Education and health care employment increased by 34,000, and employment in government dropped by 52,000 in June.

The overall unemployment rate increased to 9.5 percent in June, putting it at a 26-year high.

AFL-CIO President John Sweeney said today’s jobs data show that creating jobs is the key to a full economic recovery.

Congress and the Obama administration need to continue to remain focused on stimulus efforts to end the recession. Additionally, this is not just a problem in the United States, but at this stage, job loss is the vortex of the global economic crisis.  To address this problem we believe that all governments should focus an extra 1 percent of GDP [gross domestic product] for stimulus focused on job creation. 

The rate of job loss has been slowing, but even if that trend continues and the recession ends this year, the nation likely will confront a massive employment deficit of 10 million jobs and a long period of slow wage growth, according to the Economic Policy Institute (EPI). 

In the early 1990s, it took 15 months from the official end of the recession before the unemployment rate stopped rising—and 19 months after the end of the recession in the early 1980s. But it’s not sufficient for the unemployment rate to fall to turn around the economy. The number of new jobs created must keep up with population growth—that means 127,000 news jobs must be created a month, EPI says. 

In a June 30 conference call, EPI President Lawrence Mishel noted another trend that is slowing the recovery: stagnant wages. The BLS reported that wages continued to drop in June, with average weekly pay for nonmanagerial workers falling to $609.37, from $609.51. 

If the current recession ends with a return to the way things were before it began, Mishel says, working families won’t have much to celebrate.  “Even before the perfect storm hit Wall Street, housing, and the banks, the economy was already broken for workers.” 

That means our challenge won’t end when the recession does. Unless we fix our broken economy so that it will start to provide fair value for work again, working families will keep losing ground.

The U.S. unemployment rate increased to 9.5 percent in June, a 26-year high, and up slightly from 9.4 percent in May. Some 467,000 jobs were lost in June, according to data released today by the Department of Labor. 

The number of long-term unemployed (those jobless for 27 weeks or more) increased by 433,000 over the month to 4.4 million. That is an increase of more than 100,000 over the job loss in May.

This is the 18th straight month of job loss, with 6.5 million jobs gone since the start of the recession in December 2007.

There are now 14.7 million jobless U.S. workers, a number that doesn’t reflect the severity of the problem. When the underemployed and those who want jobs but have given up looking are counted, the broader U.S. unemployment rate stands at 16.8 percent—more than 25 million people who need jobs or full-time work but cannot find it. 

The recession has wiped out the entire growth in jobs over the past nine years—the economy currently has fewer jobs than it had in May 2000, according to the Economic Policy Institute (EPI). The workforce, however, has grown by 12.5 million workers since then.  

Says EPI economist Heidi Shierholz:

This is the only recession since the Great Depression to wipe out all jobs growth from the previous business cycle, a devastating benchmark for the workers of this country and a testament to both the enormity of the current crisis and to the extreme weakness of jobs growth from 2000-2007. 

Cutting through the myths and explaining the importance of workers’ freedom to form unions and bargain, Mark Ayers, president of the AFL-CIO Building and Construction Trades Department (BCTD), makes the case for the Employee Free Choice Act in the upcoming issue of The Voice, the magazine of the Construction Users Roundtable (CURT). 

In an op-ed aimed at leaders in the construction industry, Ayers says much of the controversy around the legislation is based on “outlandish claims” by opponents who hope to keep workers from bargaining for a better life. Indeed, Ayers says, the freedom of workers to form unions and bargain is a tool to strengthen the economy. 

Ayers says that when it comes to wages, health care benefits and training of workers, unions help level the playing field and improve economic performance among employers: 

The Employee Free Choice Act is a win-win for America and American businesses. Unions are an essential part of a strong democracy, and they play a crucial role in our public and community life. Unions also make workplaces safer and more productive, and they work to raise professional standards.

Despite a disinformation campaign by big corporations, Ayers says, many business owners and entrepreneurs across the country support of the Employee Free Choice Act, knowing that workers with economic security and purchasing power will help rebuild the economy: 

We applaud the tens of thousands of responsible employers from our industry who have gone on record in support of the Employee Free Choice Act. They understand the value of widespread, shared prosperity in creating sustained economic growth in America. To them, the passage of the Employee Free Choice Act would be a welcome occasion.

Read the whole thing here.

If you get a chance, take a minute and do your part for airline safety and passenger sanity. The Flight Attendants-CWA (AFA-CWA) ) is urging the U.S. Senate to maintain the ban on in-flight cell phone use. Click here to send your senators a message.

The ban was included in the House-passed version of the Federal Aviation Administration reauthorization bill (H.R. 915) in May. The Senate is expected to act this summer. The union says:

“Cell phone usage in the cabin would create a new security risk, compromise flight attendants job of safely executing an emergency evacuation, and ability to maintain order within the cabin amongst cabin noise and tension.”

From the passengers’ viewpoint, don’t forget the possible nightmare of a middle seat, cross-country flight stuck next to a serial yakker. In an interview on the travel blog GADLING, Rep. Jerry Costello (D-Ill.) says the cell phone ban goes beyond just eliminating the annoyance factor.

Everyone has experienced poor cell phone etiquette and how annoying it can be. Our bill will make sure the current ban on in-flight cell phone use is not lifted. Beyond the annoyance factor, this is a safety issue. Flight attendants already have to deal with people that will not hang up their phones, and physical altercations between passengers are not unheard of. Also, in-flight cell phone use is not conducive to providing safety instructions and other important announcements.

Click here to send a message to your senators urging them to maintain the in-flight cell phone ban.