Bailed-Out Banks Won't Create Jobs: What Next?

After more than four years since the start of the recession in December 2007 and three years after President Obama assumed office, the jobs crisis continues to be the US economy's number-one problem.

Based on the US Department of Labor's more accurate latest "U-6" unemployment rate, at the official end of the recession in June 2009, there were 25.4 million jobless; today, more than 30 months later, there are still 23.4 million people without work. That means only approximately 67,200 jobs were created each month over two and a half years - a monthly number barely half of what is needed merely to absorb new entrants into the labor force.

Most of the 2 million jobs created in the private sector since Obama assumed office three years ago have been lower-paid service jobs, part-time jobs and temporary forms of employment - all of which have lower wages and few benefits. Higher-paying jobs and jobs with benefits in manufacturing and construction have, in contrast, continued to decline since the June 2009 recession low point. Today, there are still 79,000 fewer jobs in manufacturing and 680,000 fewer jobs in construction than at the June 2009 recession low point. There were 21.1 million manufacturing and construction jobs when the recession began in 2008. There are only 17.3 million manufacturing and construction jobs today.

More