Wednesday, May 27, 2009

Unemployment picture worst since 1981

New analysis from the Economic Policy Institute shows that the unemployment situation today is the worst since the 1981 recession and no relief until late in 2010 at the earliest.

This presentation examines the labor market characteristics of the current recession and the expected landscape for 2010. Unfortunately, the economy has deteriorated so much since October/November 2008 that our fears last November—that unemployment would exceed 10% in mid-2010 if there were no stimulus—will likely be realized even with the substantial, smart stimulus package in place. Consequently, there will be unacceptably high unemployment and associated income losses and poverty rates next year and beyond. For instance, some one-third of the workforce will be unemployed or underemployed at some point in 2010. Higher unemployment will drive child poverty to 27%—up from 18% in 2007—and black child poverty will exceed 50%. The analysis has led him to predict, for example, that black unemployment will reach 27.8% in Michigan and over 22% in California and Mississippi.

See a slideshow of this data here...