Oct. 13, 2003 - 22:20 MDT

THE WONDERING JEW

Different Now

I keep seeing articles about unemployment troubles in our country and my personal opinion is that we have grave troubles.

A few quotes from an article by Adam Geller of the Associated Press in the Denver Post of Sunday October 12, 2003. In part he says, "Permanent layoffs set latest recession apart."

He says, "In past downturns, employers cut large numbers of jobs in temporary layoffs, then called many workers back once a recovery began."

"Although the economy continues to rebound, most of the 2.7 million jobs lost since early 2001 won't be coming back analysts say.

A bit further on Mr Geller says, "But employers also are limiting or cutting jobs by squeezing more productivity out of existing workers, sometimes by using additional technology. Many companies have cut jobs by outsourcing work to firms and facilities overseas."

Later Mr. Geller writes, In most past recessions, temporary layoffs accounted for 30 to 40 percent of the rise in unemployment," said Erica Groshen, an economist and a colleague Simon Potter.

"Since those job cuts were reversible they helped the labor market rebound quickly as the economy found its legs. That explains situations like one in September 1983, when the economy added more than 1 million jobs in a single month."

Then the article continues, "But that began to change in the early 1990's -- during the so-called 'jobless recovery" -- when employers sent a larger share of workers home without any plans to call them back." "It is even more pronounced during the current economic cycle, with temporary layoffs accounting for just 7 percent of the rise in unemployment, Groshen and Potter found. With companies dismissing workers permanently, the kick start provided by past callbacks from temporary layoffs is not happening this time around."

"Although the recovery began nearly two years ago, the economy has lost 1 million jobs since that time. When employers added 57,000 new positions to payrolls in September, it marked the first increase in employment since January, even as the percentage of adults with jobs once again dropped."

One more quote from Mr. Geller who was discussing a comment made by a VP of human resources for VF Jeanswear, "In order to compete . . . . .you're almost forced to have it (jeans) produced in locations where you can get the best cost and unfortunately that's just not here."

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My muddled mind wonders -- recovery ? for who ? the people out of jobs are seeing no recovery. Does recovery mean more profits for owners and stockholders ? There exists a problem in our country and our world which is an inequity. I have no idea of how to solve it but I keep reading of these businesses sending their operations overseas, manufacturing, book keeping, sales, and other paper work -- beause why ? ? ? ? ? Because big businesses can get the work done a heck of a lot cheaper than in our country. And another benefit ? Businesses don't have to match the Social Security taxes that their employees would pay if they were in our country.

We have bought goods that were made overseas which were once manufactured in our country. It seems obvious to me that jobs are lost here, which enables us to buy goods cheaply -- that is for those of us who are still working or are receiving a pension.

I also notice in articles in our papers that benefits (most of which were in union contracts) are being drastically trimmed. HMO costs are increasing for most of us. The company I retired from has a certain sum they will pay every year for health care. Paid to most any HMO who is qualified. However as costs of health care increase, the corporations are cutting back or at least are not meeting the rise. Pensions are under attack now too. My cost of living Social Security adjustment comes nowhere near matching the increased cost of my existence.

Seems to me that if we can't bring up the standard of living for all nations of the world (hah hah hah) we can at least force businesses to keep the work in our country, to keep us employed to the point we can buy what is on the market that we need. And rather than many of us being unemployed and unable to buy the necessities it seems to me that every able and capable person should have a job. We can't all be rocket scientists or electronic gurus, high priced design engineers and all that. But most of us can do manufacturing work, and other things that have fled the country because businesses are in search of higher profits. Anybody have any good ideas on how this can be corrected ? ? ? ? ? ------ Oh yeah, I know, things are Different Now . . . . . . . . . . . .

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