Unemployment

America’s post-pandemic employment picture is an unsettling paradox. On the one hand, job totals are finally back above pre-pandemic highs — and unemployment rates skirt fifty-year lows. But at the same time, overall work rates are lower than they have been since the 1980s — and millions of workers who dropped out of the labor force during the Covid-19 lockdowns have yet to return. A peacetime labor shortage has erupted, yet vast numbers of men and women are still sitting on the sidelines of the economy. America is renowned for its work ethic — and rightly so. The average worker in the United States clocks more hours each year than those in Canada, Australia, Western Europe and now even Japan. But those are the work patterns of US men and women holding down a job.

Joe Biden cheerfully told Americans that most of them are too thick to understand what a “supply chain” is. Naturally, he understands it thoroughly. You can see with your very own eyes how well he has handled it. Since, as Joe said, you must be wondering why so many shelves are empty, I’m here to explain. Following the president’s wise advice, I will use small words and a simple story. Let’s begin in the good ol’ days, not too long ago, when the shelves were magically full. The story begins in a land ever so far away, where happy people worked and worked to make Christmas toys for children in Kansas. When they finished making the toys, they placed each one in a little box and then placed lots of them in a great big box.

The Bureau of Labor Statistics issued its August jobs report this morning and the numbers are pretty dismal. While the unemployment rate dropped 0.2 percent to 5.2 percent, the number of new jobs created was only 235,000, far below expectations of about 700,000. In June the number was 962,000 and in July a whopping 1.1 million. And the unemployment was not spread evenly across the population. Unemployment went down for adult men and whites, but black unemployment went up significantly, from 8.2 percent in July to 8.8 percent in August. The surge in the Delta variant of the coronavirus is widely thought responsible.

It wasn’t the exact same speech, but the words were familiar and the message was identical. President Biden addressed the disappointing April jobs report on Monday, just as he did on Friday. Economists had expected the economy to create as many as one million jobs in that month, but employers added just 266,000. Biden insists that everything will be all right. It takes time to recover from a once-in-a-century pandemic, he said, urging patience both days and no doubt sensing the political danger a slowing economy puts on his ambitious infrastructure package and other spending proposals. On Friday, the president asserted that his $1.9 trillion stimulus package was a long-term play: 'We never thought that after the first 50 or 60 days everything would be fine.

The worst day of my childhood was in 1995 when my father lost his job. He worked close by as a cook in a local restaurant, just a mile or two from our modest home in Cranston, Rhode Island. I recall what it felt like when he broke the news:  I felt my legs start to go under me. I still see him walking up the small hill that led to our home: his head down, his spirit crushed. I still see the look on his face, a man whose purpose had been taken away. My mother cried. We had to sell our house. Nothing would ever be the same. I suspect many American families know what I’m talking about. Nearly 30 million have lost their jobs in just six weeks alone. Millions more will follow.