Traditional signs that a recession is coming to an end include a rising rate of productivity as the economy begins to pick up but employers remain reluctant to hire more workers to expand production. The US economy is now in that recessionary phase, according to most economic pundits, with a significant increase in productivity.
Forbes magazine, in its November 16 edition, notes that the jobs market in this recession has been the bleakest in a generation. National unemployment has exceeded 10% – the worst in 26 years – from a low of 4.5% in May of 2007. According to the Forbes article titled “Early Risers” unemployment lagged the larger economy by 5 months in the recession of 1982, by a year in the recession of 1991, and 2 ½ years following the 2001 slump. The trend is that employment recovery is taking longer and longer each recession.
In identifying where jobs are and will likely be in the next year, the article finds that California will continue to lose jobs through 2010. However, Texas will grow by 43,000 jobs and Washington, Oregon, Colorado and Georgia are forecast to see job growth through 2010.
If this article is correct about jobs growth through 2010, the best place to find a job is some place other than California. This does not bode well for government tax revenues at the local and State level, nor for the housing market here. At least that is my take.
Within the last few days trial balloons have been floated from the Governor’s office about how bad the next State budget will be due to inadequate revenues, and the specter of continuing State employee furloughs, program cuts and eliminations are being laid out for the public to see. If an economic recovery is under way, it seems it will be a while before California sees it and the level of service provided by our State government is in for further decline.
The legislature continues to do what they do best, overspend, and the state workers pay for their incompetance. Contrary to popular belief, most state workers live paycheck to paycheck. When I started at the state 4 years ago, I made $12.50 an hour. Try supporting 2 children on that. Now they’ve cut our pay by 15% and expect us to live. A large portion of state employees and losing their homes, their cars, going to food banks, and our wonderful governor, doesn’t give a rat’s butt. He should be slashing welfare benefits, not slashing pay of those who are actually WORKING FOR A LIVING!
Since 1986, California has paid more in federal taxes than it gets back in services. We are subsidizing poor red states in the south and the midwest as well as the Wall St bailout and the wars.
If we had a competent Governor or competent US Senators and Congressmen they would all be working together to get our money back. They are more committed to their parties than they are to California. I am tired of people thinking that they are either Republicans or Democrats before all else.
Instead of solutions we get the scapegoating of state workers and more and more education cuts. Tonight on 60 Minutes, they did a story about the levees in Central CA that are in desperate need of repair. If they break, salt water will contaminate our water supply and eliminate our source of drinking water.
They have known about the decrepit condition of those levees for the last few years, yet nobody has done anything about it. Why hasn’t the federal government stepped in?
While not addressing public sector jobs there is another factor to add in the mix.
Those seniors returning from the ranks of the retired and others who are extending their employment status due to losses in their 401K’s and other investments.
This closes doors that might have been open for younger workers trying to provide for their families.