Posted February 9, 2011 at 8:00 am, in from Robert Kuttner
By Robert Kuttner
Co-Founder and Co-Editor of The American Prospect
Once again, the job numbers are dismal. In January, the U.S. economy created just 36,000 domestic jobs, far below the roughly 145,000 that economists had forecast. The unemployment rate fell, to 9 percent, but only because more and more discouraged workers are giving up and leaving the workforce.
The U.S. still has a jobs gap of about 14 million jobs, and that number is increasing as the labor force grows. Counting people who’ve given up, or who are working part time when they want full time jobs, the real unemployment number is around 17 percent. America now has about 25 million people either out of work or underemployed.
Meanwhile, corporate profits continue to set records. Profits in the third quarter of 2010 were 1.659 trillion, about 28 percent higher than a year before, and the highest year-to-year increase on record.
What’s going on? Very simply, America‘s corporations no longer need America’s workers.
As Harold Meyerson documents in a brilliant piece for The American Prospect, our most admired corporations — GE, Apple, Hewlett Packard, Intel — are creating ever more jobs overseas and relatively fewer at home. This has the double benefit of taking advantage of cheap labor abroad and disciplining workers to accept low wages at home. Along with the high unemployment rates have come declining earnings. Meyerson writes:
“In 2001, 32 percent of the income of the firms on Standard & Poor’s index of the 500 largest publicly traded U.S. companies came from abroad. By 2008, that figure had grown to 48 percent.” (more…)