The worst is still ahead of us, says NYU economist Nouriel Roubini, who forecasts more job losses to come.
"There's really just one hope for our leaders to turn things around,” Roubini writes in the New York Daily News.
“A bold prescription that increases the fiscal stimulus with another round of labor-intensive, shovel-ready infrastructure projects, helps fiscally strapped state and local governments and provides a temporary tax credit to the private sector to hire more workers.”
October’s 200,000 jobs loss was less bad than the 700,000 jobs lost in January but current job losses still average more than the per month rate of 150,000 during the last recession, Roubini points out.
“Many of the lost jobs are gone forever, including construction jobs, finance jobs and manufacturing jobs,” Roubini says, pointing out that recent studies suggest that a quarter of U.S. jobs could be out-sourced over time to other countries.
The long-term picture for workers and families is even worse than current job loss numbers alone would suggest, Roubini says.
That’s because many firms are telling their workers to cut hours, take furloughs, and accept lower wages.
“Specifically, that fall in hours worked is equivalent to another 3 million full time jobs lost on top of the 7.5 million jobs formally lost,” he observes.
The average workweek is now down to 33 hours, the lowest on record dating back to 1964, briefing.com reports, and 35.6 percent of the civilian labor force officially counted as being unemployed has been out of work for 27 weeks or longer.
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