Editor’s Note: The following report is excerpted from Jerome Corsi’s Red Alert, the premium online newsletter published by the current No. 1 best-selling author, WND staff writer and columnist. Red Alert subscriptions are $99 a year or $9.95 per month for credit card users. Annual subscribers will receive a free autographed copy of “The Late Great USA,” a book about the careful deceptions of a powerful elite who want to undermine our nation’s sovereignty.
Nearly 1 million unemployed American workers, frustrated with a lack of available jobs, are dropping out of the labor force, Jerome Corsi’s Red Alert reports.
Likewise, the number of individuals unemployed for more than 27 weeks dramatically worsened in the first year of the Obama administration. Discouraged workers are not counted in official unemployment statistics.
“Long-term unemployment and discouraged job seekers are the untold stories of the deepening unemployment crisis the Obama administration has been unable to solve,” Corsi wrote. “The inability of the Obama administration to create jobs is more serious than the 10 percent unemployment number registered in December, once we take into consideration long-term unemployment and discouraged job seekers, categories currently being ignored by the mainstream media in an apparent attempt to prop up the sagging approval ratings of a Democratic president.”
The number of long-term unemployed 27 weeks or longer and workers who have dropped out of the labor force due to discouragement has dramatically worsened in the first year of the Obama administration, hitting record numbers in December 2009, according to Bureau of Labor Statistics data.
With the true picture of unemployment in the United States much worse than the 10 percent unemployment reported by the BLS, Red Alert anticipates the unemployment crisis in the United States will persist throughout 2010.
Corsi presented the following statistics:
- A total of 6,130,000 workers had been unemployed for 27 weeks or more in December 2009, the most ever since the data were first collected in 1948, and more than double the 2,612,000 unemployed for a similar length of time only a year ago.
- Those unemployed for 27 weeks or more increased to constitute 39.8 percent of the unemployed in December 2009, up significantly from only 22.9 percent of the unemployed only a year earlier.
- Discouraged workers who are not counted in the labor force because they have simply given up looking for jobs numbered 929,000 in December 2009, the most ever since the data were first collected in 1949, a one-third increase from the 642,000 in December 2008.
Moreover, reducing unemployment below the current 10 percent level will be more difficult, given the extent of the growing long-term unemployment picture and the possibility that discouraged workers may rejoin the labor force and begin looking for jobs should new ones be created in the economy, Corsi explained.
Had the labor force not decreased by 661,000 in December, the jobless rate would have been 10.4 percent, according to economists David Rosenberg at Gluskin Sheff & Associates in Toronto and Harm Bandholz at UniCredit Credit in New York.
“Total unemployment is higher than the official numbers,” Bandholz told Bloomberg.
The participation rate, or the share of the population the BLS considers to be in the labor force, fell to 64.6 percent in December, the lowest level since 1985.
Even the New York Times is characterizing America’s long-term unemployed as “a growing underclass,” noting that the average time a person was unemployed in December was 29.1 weeks, compared with two years earlier, when the average unemployed person had been out of work for 16.5 weeks.
“These statistics show Americans looking for work are unemployed longer, to the point of being so discouraged that they drop out of the labor force altogether,” Corsi noted.
Red Alert previously reported that the true level of unemployment is closer to 22 percent, when part-time workers looking for full-time work and those who have dropped out of the labor force are added into the equation.
Red Alert has warned that the current high unemployment rate is a result of free-trade globalization that has shipped overseas millions of American manufacturing and technical jobs, mostly to India and China.
In a global economy where multi-national corporations are free to pursue the cheapest labor available anywhere in the world, Corsi warned that these jobs are unlikely to return to the United States.
Red Alert’s author, whose books “The Obama Nation” and “Unfit for Command” have topped the New York Times best-sellers list, received his Ph.D. from Harvard University in political science in 1972. For nearly 25 years, beginning in 1981, he worked with banks throughout the U.S. and around the world to develop financial services marketing companies to assist banks in establishing broker/dealers and insurance subsidiaries to provide financial planning products and services to their retail customers. In this career, Corsi developed three different third-party financial services marketing firms that reached gross sales levels of $1 billion in annuities and equal volume in mutual funds. In 1999, he began developing Internet-based financial marketing firms, also adapted to work in conjunction with banks.
In his 25-year financial services career, Corsi has been a noted financial services speaker and writer, publishing three books and numerous articles in professional financial services journals and magazines.
For financial guidance during difficult times, read Jerome Corsi’s Red Alert, the premium, online intelligence news source by the WND staff writer, columnist and author of the New York Times No. 1 best-seller, “The Obama Nation.”