Showing posts with label jobless. Show all posts
Showing posts with label jobless. Show all posts

Sunday, 10 July 2011

For Americas "99ers," jobs crisis is hard to escape






SEWELL, New Jersey



Mary Kay Coyne has just filed what she says is her 1,862nd job application since being thrown out of work three years ago.
She is one of millions of Americans whose unemployment benefits have expired -- after 99 weeks in many states -- as the United States suffers its highest level of long-term unemployment since 1948.
Coyne had to move in with a friend after benefit payments ran out last year. Now she gets by on Medicaid -- U.S. health insurance for the poor -- and food stamps, contributing what little she can to her friend's household costs.





"You're 56-years old and you feel like you are sitting on a big pile of nothing," said Coyne, who spends about four hours a day sending out resumes.
"For the better part of a year, I have something sitting on my chest. It's not a medical condition. It is that pressure of 'Is this going to end, when is this going to end?'"

Unlike in much of Europe, the safety net of the U.S. welfare system times out for the long-term unemployed. The federal government and many states have provided extra help for those caught up in the worst labor market in decades but the U.S. debt crisis rules out further extension of the programs.
Coyne is typical of many middle-class Americans now struggling to get by.

She used to earn $70,000 a year as an administrative assistant until her firm began to downsize and left Coyne among the growing number of Americans struggling to live on unemployment benefits, and eventually on minimal food aid.

Now Washington is considering cuts to social welfare programs to shrink a swelling budget deficit.
It may not only be Americans like Coyne who feel the pain. Some economists say the cuts could make it even harder to shrink long-term unemployment that damages the wider economy by dampening consumer demand and lowering output.

In 2010, an estimated 3.9 million unemployed Americans exhausted unemployment benefits, according to the National Employment Law Project, an advocacy group that campaigns for lower-wage workers.
More than 14 percent of the U.S. unemployed have been out of a job for 99 weeks, or longer.
May saw the second-highest percentage and outright number of Americans out of a job for that period or more since weekly data was first collected in 1967. The highest was in April. Payrolls data for June, due on Friday, is unlikely to show a major change in the labor market after the overall jobless rate rose to 9.1 percent in May, economists say.

Many so-called "99ers" subsist on social services like food stamps and Medicaid, programs now in danger of deep cuts demanded by many Republicans in Congress in exchange for allowing the federal government to go deeper into debt.

"An increase in demand for social services is what you would expect in a downturn of this magnitude and so the fact that they are cutting the social safety net is quite perplexing," said Sylvia Allegretto, a labor economist at the University of California at Berkeley. "We've just never seen (long-term unemployment) at these levels, period."

Forty six percent of those looking for work have been jobless for six months or more and the average length of job searches that eventually result in a hiring has doubled to 10 weeks between 2007 and 2010.

Wednesday, 22 June 2011

Obama sets course for exit from Afghanistan

  President Barack Obama announced a plan on Wednesday to start withdrawing US troops from Afghanistan in a first step toward ending the long, costly war and returning America's focus toward it's own troubled economy.

Obama said he would pull 10,000 troops from Afghanistan by year's end, followed by about 23,000 more by the end of next summer and a steady withdrawal of remaining troops after that.

In a 15-minute televised address, Obama vowed that the United States -- struggling to restore its global image, repair its faltering economy and bring down the high jobless rate at home -- would end a decade of military adventures prompted by the September 11 attacks in 2001 and exercise new restraint with American military power.

"Tonight, we take comfort in knowing that the tide of war is receding," Obama said, heralding the gradual drawdown of US forces in Iraq and the limited US involvement in the ongoing international campaign in Libya.

"America, it is time to focus on nation building at home."

Yet news that Obama will pull the entire 'surge' force he sent to Afghanistan in 2010 is certain to fuel friction between Obama and his military advisors who have warned about the perils of a hasty drawdown.

Nearly 10 years after the Taliban government was toppled, US and NATO forces have been unable to deal a decisive blow to the resurgent Islamist group. The Afghan government remains weak and notoriously corrupt, and billions of dollars in foreign aid efforts have yielded meager results.

Obama's decision on trimming the US force was a more aggressive approach than many expected. It went beyond the options offered by General David Petraeus, the outgoing commander of US and NATO troops in Afghanistan, whom Obama has picked to lead the CIA.

The president's decision reflected the competing pressures he faces as he seeks to curb spending and halt US casualties without allowing the threat of extremist attacks to fester.

Outgoing Defense Secretary Robert Gates said he supported Obama's decision. But the plan is unlikely to sit well with the Pentagon's top brass who worry insurgents could regain lost territory as fighting intensifies along Afghanistan's eastern border with Pakistan.

"We've undercut a strategy that was working. I think the 10,000 troops leaving this year is going to make this fighting season more difficult. Having all the surge forces leave by next summer is going to compromise next summer's fighting season," said Senator Lindsey Graham, a Republican member of the Senate Armed Services Committee.

Even after the withdrawal of the 33,00 US troops, about 70,000 will remain in Afghanistan, about twice the number there when Obama took office.

Reaction from the US Congress was mixed, as lawmakers impatient with a war that now costs more than $110 billion a year complained Obama should have embraced a larger drawdown.

Unease in Washington over the war has escalated with worries about massive budget deficits, spiraling national debt and unemployment running at more than 9 percent. These are Americans' chief concerns and the issues likely to drive voters in next year's presidential election.

Obama clearly has been mindful of the US public's lack of support for the war as he eyes his re-election campaign.

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