New data released last week by the Bureau of Labor Statistics showed that five more states -- Florida, Illinois, Indiana, Kentucky, and Tennessee -- had crossed into double-digit unemployment, while Michigan's unemployment rate rose from 12.9% to 14.1% in a single month.
14 U.S. states are now in double-digit unemployment and many continuing to see large increases month to month.
Michigan's job situation has gone from bad to worse with the recent bankruptcies of GM and Chrysler, while in Oregon, May unemployment of 12.4% represents a 33-year high. Although officials from Oregon say they are starting to see a slowdown in the pace of job loss, they also fear that jobs will remain scarce well into the next decade.
A front-page Washington Post story on June 21 described the same trend nationwide and said new jobs were the missing ingredient in a long-awaited economic recovery.
Despite signs that the recession gripping the nation's economy may be easing, the unemployment rate is projected to continue rising for another year before topping out in double digits, a prospect that threatens to slow growth, increase poverty and further complicate the Obama administration's message of optimism about the economic outlook.
The likelihood of severe unemployment extending into the 2010 midterm elections and beyond poses a significant political hurdle to President Obama and congressional Democrats, who are already under fire for what critics label profligate spending. Continuing high unemployment rates would undercut the fundamental argument behind much of that spending: the promise that it will create new jobs and improve the prospects of working Americans, which Obama has called the ultimate measure of a healthy economy.
Hat tip to EPI.
