"Listening to the Jobs Report"

This article, "listening to the Jobs Report" discusses the need for a more sensible stimulus package. In the last jobs report, it was reported that more then 1.38 million people had been unemployed for six months or more as of January 2008. The last time the unemployment numbers were so low was after the 2001 recession.

After the 2001 recession, Congress extended unemployment compensation once the initial 13 weeks of benefits was exhausted but in the upcoming stimulus bill Congress may not include an extension to the unemployment compensation. The Republicans are blocking the jobless benefits while the democrats are pushing for an increase in benefits. The Republicans argue that an extended unemployment benefits will cause those unemployed to not be motivated to look for a new job as quickly. If the lawmakers would trim the less effective stimulus measures under discussion, including the tax rebates for the rich, it would leave more room for jobless benefits for the unemployed.

Over 17,000 jobs were lost in January, the worst it has been in more then four years. On top of the large numbers of jobs lost there was also a decrease in the numbers of jobs created. During the same period the year before 169,000 jobs were created compared to the 42,000 jobs that were created this year. The decrease in jobs being created should only give congress an even more reason to approve the stimulus package, which includes an extended unemployment compensation.

With a decrease in jobs being created and an increase in the number of people being unemployed means those who are already unemployed will stay unemployed for longer due to the lack of jobs to search for. The unemployed are also more likely to stop spending, which also deprives the economy of the much needed boost. The long-term unemployed are also more likely to settle for jobs with little pay and no benefits, which only prolongs the spending boost once they do go back to work.

This article relates to the documentary "Roger and Me" by Michael Moore in the sense that the town of Flint was suffering from a large layoff due to the closure of the General Motors Factory and no more jobs being created. The closure to the General Motors Factory laid off over 30,000 people and that left 30,000 people without jobs and no new jobs to go to, which affected the economy for the town of Flint as well. Since there were so many people without jobs, current operating businesses were losing business because no one had money to shop.

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