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Do your job, DOL

The May employment numbers were in the news last week. Among the releases on PR Newswire that dealt with the most recentstatistics—49,000 jobs were lost and the unemployment rate jumped from 5.0 percent to 5.5 percent, the largest one-month jump in 22 years—were two spins on the numbers and their implications. Between these two was another release that shows that U.S. workers aren't giving up hope, in spite of disappointing numbers.


Commenting on the May numbers, U.S. Department of Labor Secretary Elaine L. Chao said, "Today's increase in the unemployment rate reflects the fact that unusually large numbers of students and graduates are entering the labor market." Short and sweet, but missing the point that it isn't just students and graduates who are seeking employment.

Laid-off workers like Dale Keller, a 46-year-young corporate casualty profiled in USA Today's June 9 article "Economy squeezes American Dream" are searching and having little-to-no luck finding a job.

In 2006, four months after accepting a $150,000-a-year marketing position with a Pennsylvania manufacturer of automated train control systems, Keller found himself out of work. After almost two years, he still hasn't found a job that would pay much more than half his former salary. Employers won't hire him for the lesser paying jobs for fear he eventually could grow dissatisfied and leave.



Keller said, "I"m one of those who've fallen through the cracks. I don't know what to do."

The cracks are filling rapidly as more and more companies announce layoffs: Ford, GM, Continental Airlines, and Sprint. Chicago-based Challenger, Gray and Christmas reported last week that "planned job cuts soared to a 29-month high of 103,522 in May."

House Speaker Nancy Pelosi released a much longer, harsher statement about the current employment situation than did Secretary Chao. Pelosi said, "[The] alarming rise in the unemployment rate is further evidence of the need for a New Direction in our nation's economy. Since the beginning of this year, our nation has lost more than 325,000 jobs, including 49,000 in the month of May alone. Those men and women, and millions more, are facing additional economic pressure as gasoline, food, and health care costs climb precipitously."

Pelosi's June 6 statement included other statistics:


  • May represented the fifth straight month of job losses, the worst losing streak since 2005.

  • The number of people looking for work climbed 861,000 to 8.5 million in May,
  • Nearly one in five job seekers has been jobless for six months or more.

  • Average weekly earnings continue to fail to keep pace with inflation—up only 3.2 percent over the last year compared to nearly 4 percent inflation.

  • Crude oil prices today reached a record $134 per gallon [now surpassed], and gas prices remain at a record of $3.99 [also surpassed]—more than double that of 2001—after setting new record high prices for 28 or 29 days [ditto surpassed]. Diesel prices remain at near record levels, at $4.76 a gallon [double-ditto surpassed].

  • Families faced the biggest jump in food prices in 18 years in April as prices rose by more than 6 percent over the last quarter. Bread costs 14 percent more than a year ago; milk is up 13 percent.

Pelosi is promoting legislation to "provide urgently needed assistance to millions of Americans who have lost their jobs and are struggling to make ends meet." Citing the recovery rebates as the first of Congressional initiatives, Pelosi said Congress has sent the President bipartisan legislation that will help create 40,000 jobs in transportation and construction. It also has enacted legislation to suspend the fill of the Strategic Petroleum Reserve, which reportedly has been successful in the past in lowering gas prices, and enacted the Farm Bill to ease the strain of food prices.



If I were a betting woman, I'd bet that each of us knows someone like Dan Keller who has been out of work for months or even years and is having a very difficult time finding a new position. Personally, I can't help but think there but for the grace of God go I. Which is why I find it interesting that 75 percent of workers (down 3 percent from April) still believe they are unlikely to lose their jobs, according to the latest Spherion Employee Confidence survey.

The Employee Confidence Index rose 0.7 points to 46.9 in May, the first increase in nine months. According to Spherion, the survey reflects workers' increasing confidence n the economy, as more workers report that the economy is getting stronger. Somehow, I don't believe any of those who've fallen through the cracks participated in this survey.

Secretary Chao is quoted on the Department of Labor's home page as saying, "Getting people back to work is what this Department does. Giving people hope in their future is our job." Speaking on behalf of Keller and my unemployed friends relegated to the cracks, I say, DOL, do your job.