Fifth Straight Month of Job Losses
Friday, June 6th, 2008 by KarinaToday, the Department of Labor released its employment report for May showing a loss of 49,000 jobs, and an unemployment rate that increased to 5.5 percent – the biggest monthly rise since 1986. The economy has lost nearly 325,000 since the beginning of the year.
Speaker Pelosi on the disappointing May jobs report:
Today’s alarming rise in the unemployment rate is further evidence of the need for a New Direction in our nation’s economy. Since the beginning of this year, our nation has lost nearly 325,000 jobs, including 49,000 in the month of May alone. Those men and women, and millions more, are facing additional economic pressure as gasoline, food and health care costs climb precipitously.
The New Direction Congress will send the President legislation to provide urgently needed assistance to millions of Americans who have lost their jobs and are struggling to make ends meet. Just as we worked cooperatively in passing a stimulus plan to put $117 billion into the hands of more than 130 million Americans, we urge the President to support legislation to address the needs of America’s unemployed and struggling workers. Today’s unemployment numbers demonstrate that this is an urgent challenge.
Leader Hoyer:
It is increasingly clear that the only people who believe the Bush Administration’s policies are working are the cheerleaders who reside and work at 1600 Pennsylvania Avenue. Today’s dismal jobs report is more bad news for American workers, who not only are struggling with the reality or fear of job loss but also with decreasing household incomes, exploding gas and food prices, and skyrocketing health care costs.
While economists debate whether the economy is technically in recession, the one-half point jump in the unemployment rate in May to 5.5 percent and the loss of more than 300,000 jobs since the first of the year demonstrate that the Bush economy is wheezing to the finish line.
The American people want and deserve economic policies that are designed to generate economic growth and create jobs, to ensure tax equity and fairness, to invest in our future, and to restore fiscal responsibility. These are precisely the goals put forward in Senator Barack Obama’s dynamic economic plan, and I look forward to working on his behalf in the campaign ahead. It must trouble all Americans that Senator John McCain, the presumptive Republican nominee, has flip-flopped and now promises to pursue the Bush Administration’s failed economic program. Our nation needs to move in the new direction that Senator Obama has outlined. The last thing we need is the third Bush term that Senator McCain promises.
Action by New Direction Congress on the Economy
Congress has enacted legislation that provides millions of Americans with Recovery Rebates.
This week, Congress sent the President bipartisan legislation that will help create 40,000 jobs.
Congress has enacted legislation to suspend the fill of the Strategic Petroleum Reserve, which has been successful in the past in lowering gas prices.
Congress has enacted the Farm Bill to ease the strain of food prices on millions of Americans.
State of the Bush Economy
The unemployment rate surged to 5.5 percent - the biggest jump in more than two decades (since February 1986) and climbing to the highest level in nearly four years (October 2004). The unemployment rate is now a full percentage point higher than a year ago. (BLS)
America suffered the fifth straight month of job losses of 49,000 in May, the worst losing streak since 2005 and those job losses have totaled 324,000 this year. (BLS)
The number of people looking for work climbed 861,000 to 8.5 million in May. Nearly one in five of those looking for work have been jobless for six months or more. (BLS)
Average weekly earnings continue to fail to keep pace with inflation - up only 3.2 percent over the last year compared to nearly 4 percent inflation. (BLS)
Crude oil prices today reached a record $134 per barrel, and gas prices remain at a record of $3.99 a gallon - more than double that of 2001 - after setting new record high prices for 28 of 29 days. Diesel prices remain at near record levels, at $4.76 a gallon. (AAA)
Families faced the biggest jump in food prices in 18 years in April – as prices rose by more than 6 percent over the last quarter. The cost of bread is 14 percent higher than a year ago, while milk is up 13 percent. (BLS)