Queens Tribune
 
....July 3, 10:31 AM
 
Queens Sees Jump In Unemployment Rate

By Noah C. Zuss

Workers, hold onto your hats – the stiff breeze of unemployment is beginning to blow.

And the unemployment rate is growing throughout New York City, most severely in Queens.

The national jobless rate jumped to 5.2 percent in May, up from 4.8 percent in April, as employers shed jobs in many sectors and the economy continues to slump. The national unemployment rate has grown considerably over the last year, standing at 4.3 percent last May.

In Queens, the overall number of unemployed workers grew only slightly over the last year, but saw a sharp 3.7 percent rise between May and April of 2008, the largest such increase in any of the five boroughs.

The unemployment rate in Queens rose in the same period by 0.3 percent, which may seem tiny, but over a year could lead to a significant rise in the number of jobless workers. If this trend continues near the current rate, the county could see more than 3 percent growth in unemployment over the calendar year.

The U.S. achieved a respectable gross domestic product growth rate of 2.2 percent in 2007, an acceptable, if sluggish figure in the vast economy. However, the near-term economic forecast looks dark, as GDP increased at an annual rate of 1 percent in the first quarter of 2008, according to final estimates released by the Bureau of Economic Analysis.

Also troubling, growth was slow in the fourth quarter of 2007, as real GDP increased by only 0.6 percent.

If these trends hold, the 2.2 percent rate of 2007 may seem like a boom time as the economy heads closer and closer to recession.

To counteract this rising tide of economic bad news and ensure that vulnerable Americans are protected, especially those in her Queens constituency, U.S. Rep. Carolyn Maloney (D-Astoria), vice chair of the Joint Economic Committee, supported a 13-week extension of unemployment benefits for those workers who have been unable to find a job in the struggling economy. The extension was included in the Supplemental Appropriations Bill that passed the U.S. House of Representatives last week before the legislative session ended. The President signed the bill and it will become effective immediately.

On Friday, more bad news came from the Bureau of Labor Statistics when the agency reported the New York State economy lost 200 jobs last month.

“I think New York’s economy is in almost a bear market now, so I’m pleased we passed the extension” Maloney said. “For many people in Queens it can mean whether they lose their house, their car, or can pay for food.”

The U.S. economy has been struggling for some time. For the fifth straight month, the national economy lost jobs and the unemployment rate rose.

Up from 5 percent in April to 5.5 percent in May – it’s the largest monthly spike in 22 years. The national economy has lost nearly 325,000 jobs this year and 1.6 million Americans have been unemployed more than six months, despite looking for work. In fact, the share of long-term unemployed is higher now than it was when Congress extended benefits over the 2001, 1990-1991, and 1980-82 recessions.

The Unemployment Insurance extension passed by the House last week will give almost 3 million Americans 13 extra weeks of unemployment benefits from an insurance system taxpayers fund throughout their careers. Relief will run through March 2009 and generally will be provided to those who exhausted regular benefits within the last 20 months and are still looking for a job.

As defined by the International Labour Organization, unemployed workers are those who are currently not working, are willing and able to work for pay, currently available to work, and have actively searched for work for an extended period.

Underemployment refers to workers out of the labor force for so long they have stopped looking for paying jobs. Not all jobless workers are counted in unemployment statistics

There has been passionate disagreement about whether to include both numbers into unemployment data in economic circles for many years, and critics often point out that real unemployment is much higher than traditional accounting suggests.

The unemployment figures indicate how many are not working for pay but seeking employment for pay.
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