Mapping the Gravest Recession

by: Mike Lux

Wed Oct 07, 2009 at 14:15


The Bureau of Labor Statistics published a new map this week. Using color codes of black and dark purple, it paints a grim picture of average annual unemployment at the county level all across the United States. It is a frightening picture of the gravest recession since the Great Depression.

How bad is it? Click here to check out this map before reading on.

If full employment is defined as four percent, then only nine counties east of the Mississippi River that fit that definition. Two counties west of the Rocky Mountains qualify; one in eastern Washington State and the other covers the North Slope of Alaska.

The bright spots of full employment can be found in the agricultural counties of the Great Plains. Montana, Wyoming, North and South Dakota, Nebraska and Kansas seem immune to the wave of persistent joblessness, at least for now.

Counties in the middle, the red zone - 5.0 to 5.9 percent average annual unemployment according the BLS map - are hard to find on this map. Wisconsin and Florida have three such counties; Mississippi, Alabama and Pennsylvania have two; New York, Illinois, Maine and North Carolina have one each; Oregon, California, Arizona, Michigan, Ohio, Kentucky, Tennessee, Georgia and South Carolina have none.

As scary and depressing as this map is, it is not the full picture. The heaviest lay-offs came after the presidential election last year. So this map almost certainly will turn even darker over the next three months.

And yet, the Bureau of Labor Statistics' monthly unemployment rate which now stands at 9.8 percent does not capture the depths of America's jobs crisis. Other BLS statistics do.

When that 9.8 percent unemployment rate was announced last Friday, the BLS press release contained three tables that told the rest of the story. Table A-1 indicated that 15.14 million Americans were unemployed. Table A-5 reported that 9.18 million Americans were working part-time involuntarily - employers had cut their hours or had furloughed them. Table A-13 noted that 5.65 million Americans had looked for a job in the last year but could not find one. What Table A-13 did not explain was that 998,000 Americans had vanished from that category since May, 2009. That adds up to 30.96 million Americans either unemployed or underemployed right now, or almost a fifth of our workforce (a note: unemployment peaked at 25% in the Great Depression).

How does our economy recover with that many people out of work or with considerably less disposable income than they are used to? How does the foreclosure crisis, and therefore housing prices, get better? I know the banks are doing great, and that will eventually trickle down to the rest of us, but in that long a run, we will definitely all be dead.

And since I'm a Democratic political consultant, I also need to point out there are a few political implications to all this. I am thrilled that my beloved home state of Nebraska, and the beautiful states of Kansas, North and South Dakota, Wyoming and Montana are still doing fairly well. But just to point out to my friends in Congress and the White House: not much in the way of swing or Democratic states or congressional districts in that grouping of states. The darkest states on that map are states like Ohio, Michigan, Pennsylvania, Florida, Virginia, Indiana, North Carolina, Missouri, Wisconsin. If those states sound familiar to you political junkies, it's because those were some of the closest states in the country in last year's election.

We need to an all-out, big, bold jobs program coming from the President and Democrats in Congress. The little ideas being mentioned right now in articles like these- extending unemployment, tinkering with some business tax incentives- will not create jobs on anywhere the scale that is needed. We need a big bold jobs bill, and we need it to come immediately after we get done with health care.

Mike Lux :: Mapping the Gravest Recession

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What kind of new stimulus (0.00 / 0)
The good news is it appears the conversation has changed over the past week or so.  Before, only some where saying we should have another stimulus or jobs program.  In a very short period of time the conversation switched to what kind of new stimulus we should have.  This reminds me of the Public Option debate.  That is very good news.

Now that we've won that argument, it is time to get the best jobs program we can.


And in both cases we had to overcome "centrists" (0.00 / 0)
from the Democratic party.

Remember Greenshoots Obama and Hale Bonddad?

The thought that a decrease in the rate of job loss was the end of the recession.

No. Recessions end when you GAIN jobs.


[ Parent ]
End (0.00 / 0)
Recessions end when you get the jobs back.  Bernanke, that is a long way in the future.

[ Parent ]
To be fair (0.00 / 0)
Bondad was only saying that the technical "bottom" of the recession was becoming apparent.  The technical term for what follows that is recovery.  Recovery doesn't mean we are out of the woods by any means, just that the horrible decline has halted.  For now.  And this is why we could be seeing a double dip recession very soon, which means decline begins anew.  Maybe the wording for this technicality should be different, like the end of the rapid decline.  

Another way to view this is when you fall off the grand canyon you don't just keep falling, eventually you hit rocks or end up drowning in the rapids.  That would also be a "hitting bottom."

--

Seeing The Forest -- Who is our economy FOR, anyway? Twitter: dcjohnson


[ Parent ]
Recession definition (0.00 / 0)
Unfortunately, the elites have a formal definition of a recession; yours is not it.  Like all our accepted economic statistics, the formal definition depends upon totals (or average, which is basically the same thing), like the GDP.  However, this means nothing to the typical person.

I've used this example before, but imagine you are in a soup kitchen.  Economic figures could be calculated for the group of people in that room.  If Bill Gates walks in through the door, the soup kitchen "GDP" would shoot through the roof.  However, not a single person actually had his lot in life improve.

Worse yet, of Gates started handing out $100 bills to everyone, or gave everyone a job, the soup kitchen "GDP" would not change, because Gates lost the same amount everyone else gained in total.

So unfortunately, you are technically incorrect.  And yes, that is a problem.


[ Parent ]
Hanford Nuclear Reservation (0.00 / 0)
Without looking at your initial link Mike, I can tell that the one county in eastern Washington is where the Hanford Nuclear Reservation is located.

A lot of government-funded cleanup and related research is happening there; furthermore a ton of workers are highly-trained engineers and scientists imported from around the country and the globe.  There is nothing magically about this county to keep itself at full-employment.  Not that anyone is saying that....


I read the following line, (4.00 / 2)
"Montana, Wyoming, North and South Dakota, Nebraska and Kansas seem immune to the wave of persistent joblessness, at least for now. "

And my immediate thought was, "Oh, all the senators that don't care are from those states, aren't they?"

Maybe I jumped to a conclusion, but in the senate there is over-representation of low-population states, that rely on resource extraction and other economic activity not available to urban populations. It seems like those states' senators mostly don't care at all about the big problems facing the rest of us.


And all the counties around Washington, DC (0.00 / 0)
are doing all right too which is part of the reason that our Congressmembers don't really get it about how dire things are.

[ Parent ]
No, if you are want employment in those states (4.00 / 2)
you leave.

Those rural red states produce a surplus of people who become unemployed migrate to cities for jobs and become blue state types.


[ Parent ]
Right On! (4.00 / 1)
Yes, we need a new Works Progress Administration (WPA) and Civilian Conservation Corp (CCC) or something equivalent. How about a Green Corps working on a new Apollo Project (as envisioned by labor unions and environmental groups), a childcare corp, and a well-funded effort to provide shelters for those escaping from domestic violence? And if the federal government paid for Medicaid, it would relieve states of a gigantic burden and smooth out the inequality between the way states provide healthcare to the poor.

Why domestic violence shelters are needed (4.00 / 1)
New study finds high rates of childhood exposure to violence and abuse in US:

According to the research, three out of five children were exposed to violence, abuse or a criminal victimization in the last year, including 46 percent who had been physically assaulted, 10 percent who had been maltreated by a caregiver, 6 percent who had been sexually victimized, and 10 percent who had witnessed an assault within their family.



[ Parent ]
When the health bill passes (0.00 / 0)
there will be opportunities in that area.  This may put a lot of people back to work.

Conservative......CNN news:Nopenhagen: US PRES 2 WKS LATE ATTEND 1 DAY, GORE JOURNEY BY TRAIN.

[ Parent ]
It's more than jobs (4.00 / 2)
How does our economy recover with that many people out of work or with considerably less disposable income than they are used to? How does the foreclosure crisis, and therefore housing prices, get better?

There's at least one obvious response, larger than jobs, from which jobs flow: restore fairness in our economy. As Bowers notes above this post, let's restore tax fairness to pay for a stimulus bill that prevents layoffs of state employees and other key goals, for starters.

Progressives should say that Reaganonmics has failed, period. Therefore, let's return to the status quo of the 1970s. Let's start with the tax rate for the wealthiest, over $5 or $10 million a year, return it to 60-80% for dollars earned over that amount. Then let's create a policy that encourages appropriate unionization until we get back to the 30% rate we had before Reagan. Then lets find a way to take giant corporations out of key media properties. Then lets make senior corporate execs have their pay limited to the range found in Europe and elsewhere. Then lets create a government policy that promotes on-shore jobs, perhaps enforcing the corporate tax rate for companies that offshore jobs, or something more stringent.

There are a whole host of changes we should push. And they all start by returning us to the status quo we had which, while not perfect, at least generated jobs and a more fair economy. This appears to be a no brainer. Just sayin...


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