We're Not All in the Same Boat

A February 2010 report prepared by the Labor Market Studies Program at Northeastern Univ. in Boston points up the economic inequality in the U.S. unemployment figures. The analysis of the unemployment figures for the last quarter of 2009 shows that the destruction of American jobs brought about by the reckless actions of our moneyed class, does not affect American workers equally.

Unemployment is higher for Lower Income People

People in the lower income class with annual incomes of $12,499 or less have 10 times more unemployment than those in the upper class making $150,000 or more per year. The report states “A true labor market depression faced those in the bottom of the income distribution; a deep labor market recession prevailed among those in the middle of the distribution and close to a full employment prevailed at the top. The underemployment rate adds even more disparity. It is 20.6% for the lower classes and only 1.6% for the highest.”

The figures also show the further deterioration of the middle class.

Annual Income
$150,000 or more = 3.2% unemployment rate
$100,000 to $149,999 = 8% unemployment rate
$75,000 to $99,000 = 5% unemployment rate
$60,000 to $75,000 = 6.4% unemployment rate
$50,000 to $59,000 = 7.8% unemployment rate
$40,000 to 49,000 = 9% unemployment rate
$30,000 to $39,999 = 12.2% unemployment rate
$20,000 to $29,999 = 19.7% unemployment rate
$12,500 to $20,000 = 19.1% unemployment rate
$12,499 or less = 30.8% unemployment rate

Local unemployment (February figures from State Labor Department)

In Broome and Tioga Counties there are 12,000 people who are unemployed. This is a rate of 9.5%. The unemployment rate for all of New York State in the same period was 9.3%.


Where are the Jobs?
The unemployment rate would actually be in the 16-17% if the number of under employed people (those working part time but needing and wanting full time work) were included. Add to this figure those discouraged workers, those who have dropped out of the labor market entirely because they have given up the search for jobs.

It is not uncommon to hear, “I’ve applied, in person, on-line and by letter for more than 40 jobs. I only got a reply from three employers that the job was filled. There’s nothing out there. It‘s very discouraging.”