Unemployment not this high since Reagan in 1982.

[midnight]

What's causing the rising ranks of the long-term jobless to exceed the pace of other recessions?

Mainly, it's the depth and duration of the job-slashing this time. Since the recession began in December 2007 through May this year, a net 7.4 million jobs have vanished. The unemployment rate has surged nearly 5 percentage points: From 5 percent in December 2007 to 9.7 percent in May.

By contrast, in the last severe recession, the rate rose less sharply over a shorter period: From 7.2 percent in July 1981 to 10.8 percent at the end of 1982.http://www.huffingtonpost.com/2010/06/05/long-term-unemployment-growing_n_601930.html

[endless october]

1. a big part of it is that we have outsourced a lot of manufacturing.

no jobs means no money to buy shit which means no jobs.

sure, there's cheap shit at walmart. but what is the real cost of those cheap imported goods?

you can't float an entire economy on credit cards. hopefully we'll wake up and realize that it's not mostly trickle down. it's trickle up.

[AllentownJake]

2. Deflationary debt crisis

Generally last longer than inventory recessions and generally last a long time.

Think Japan not 1980s...if we are lucky.

What happened in the 1980s is a minor economic earth quake compared to what is going on.

[Art_from_Ark]

3. What about Japan?

I've been in Japan ever since the high times of the '80s and the so-called "lost decade" of the '90s. Japan's problems stem from different circumstances, although unfortunately Japan is also starting to adopt a lot of the worst aspects of the American business model.

[AllentownJake]

4. Inflated values and a bad banking system

They are savers and protect their manufacturing.

Like I said, we'd be lucky.

[Art_from_Ark]

12. I don't know exactly what you mean by inflated values

Inflated housing? Land? Retail prices?

The banking system does leave something (well, actually a lot) to be desired, although I'm not sure I'd want Japan to adopt the American model.

[DebJ]

5. income much more concentrated at top this go round

What money there is goes to CEOs, COOs unlike in the 80s. Less money to spend..........how many yachts can a CEO buy, versus what the 'average' person USED to buy with that income (instead of with credit).

[midnight]

6. This is why I think we need to have the banks unleash the tax payer money

and get it moving around again.

[Karmadillo]

7. I just hope our President & other leading Dems aren't stampeded into some crazy government program

to employ all those unemployed people. Letting the invisible hand of the market do its work will lead to better times ahead for all. So far, our President has resisted the temptation to follow the mistaken big government path of sociopaths like FDR. Let's hope he doesn't let the weak sisters' compassion for the suffering weaken his resolve. It's suffering that purifies the system and keeps the wheels of capitalism rolling.

[Oedipus W. Bush]

8. Outsourcing + Increased Productivity + Labor's lower share of national income = Big Problem.

Outsourcing has reduced the number of jobs while increased productivity has reduced the number of people needed to fill those jobs. And the declining share of national income received by employees has contributed to a reduced demand for goods and services. Reduced demand causes employers to cut costs or production capacity, often through outsourcing, closing some facilities, reducing compensation or increasing productivity. It is a downward spiral which likely will continue until an equilibrium point is reached.

[xchrom]

9. Recommend

[NNN0LHI]

10. 9.7 percent unemployment is higher than 10.8 percent?

Interesting concept there.

Don

[madrchsod]

11. took me 8 yrs in the 80`s to find a full time job

from 88-2008 i was employed for all but a combined 3 yrs. retired last year at 62

[bobthedrummer]

13. ^