Monday, September 7, 2009

Labor Day 2009 - Record UnLabor Day

Happy Labor Day! Or is it Happy at all?

It's time to reassess the economy. Labor Day is a special day set aside to celebrate those who do not own the means of production, namely the laboring classes or more specifically anyone who needs to work for money to meet their short and long term needs. Those who labor are not in a position to let money work for them. Those who work for money are subject directly to the upturns and downturns in the economy. Here small businesses are in a similar position simply because they do not own enough money or assets that they can be free of the great economic shifts that have been going on in the last year.

According to the United States Department of Labor in its most recent report, over 15 million people are members of the rank and file of the Unemployed or nearly 10% of the "civilian" work force of 150 million plus as of August 31, 2009. For these 15 million Labor Day is not cause for celebration but another day in an extended forced time without work, an extended forced vacation.

To put these numbers in perspective 15 million represents the number of individuals that are unemployed and seeking full time work. The US workforce is about 154 million. Subtract 15 million who are unemployed and you get the employed workforce of 139 million. Now multiply 15 million by a factor of 3 or 4(dependents, spouses, others) and you get the real effect of these numbers. Anywhere from 45 to 60 million people are directly impacted by the 15 million unemployed. 45 to 60 million people are facing real hardship, not being able to think beyond the next week having to face foreclosure, bankruptcy, unable to meet rental and mortgage payments, forced to choose between paying bills and food, delays in going to college or increasingly reliant on college loans or to put it another way the credit markets, which only recently have started to loosen up. Another part of this working for money is the enormous difficulty individuals and small businesses have in getting out of debt.

So Labor Day represents a cautionary Holiday this year. The Labor Movement in the form of Labor Unions brought us this special day, as well as the 40 hour week and the weekend, itself. Today, organized labor represents only 12.5% of the civilian workforce. Those working in the civilian workforce are 98% employed in the private economy. Only 2% of the workforce is in the public sphere - government employees, public school teachers, police and firefighters. Organized labor represents 36.5% of the public economy and only 7.8% of the private economy. The recent bankruptcies of General Motors and Chrysler led to further weakening of labor contracts for these companies and to the breaking of longstanding agreements. It also led to breaking of business agreements with creditors. To work in a trade union in these companies is to do with less and this is true of the newspaper business, too.

Above we mentioned those who are unemployed are defined as looking for full time work. A trend in the last 15 years has been toward reliance of employers on part time workers and outsourcing jobs to contractors of jobs, whereby people work for short periods of time. Long term full time employment is not readily available.

Looking for more information on the economic and social impact of these trends, see The Future of Work in Massachusetts, edited by Tom Juravich and Pulitzer Prize winning author, David Shipley's The Working Poor: Invisible in America, (not so invisible anymore) both found at the Berkshire Athenaeum and other Public Libraries in Western Massachusetts.

So Labor Day 2009 is really UnLaboring day. It is the end of Summer. It's Back to School. It's time to buckle down and get back to work!

That's true, except for the 15 million out of work and the 45 to 60 million impacted!! For them it's a time of worry and concern!

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