How to Solve A Jobless Recovery?
Sunday, November 15, 2009 at 4:45PM In the last two days two columns have appeared in the New York Times Op-Ed pages discussing the continuing rise in unemployment. The first by leading economist Paul Krugman (http://www.nytimes.com/2009/11/13/opinion/13krugman.html)
discussed some of the tactics that the United States has been using to try and turn things around. Krugman feels strongly, as he has for many months that the stimulus package was not bold enough and would not stop companies from laying off workers, and obviously he's right. According to Krugman, Germany was much more bold, by not only infusing much needed monies into the faltering German economy, but also by passing legislation that gave employers incentives for retaining their workforce and further introduced job sharing measures that mitigated the damage. The government also introduced other projects to keep it's citizens working and earning a paycheck.
The column that appeared in the Sunday New York Times, by Bob Herbert (http://www.nytimes.com/2009/11/14/opinion/14herbert.html), highlighted the plight of the working class, especially minorities, young people and single mothers who are unemployed at a frightengly high rate. Herbert cites some pretty compelling statistics that give these workers little reason to hope, since many of the jobs they held prior to the recession don't seem to be coming back anytime soon or at all.
Another group that has been hit particularly hard are experienced workers representing many different industries, who have been laid off because they are considered too expensive or their skills outdated.
So what can be done? Will additional stimulus money infused into the economy help? Is a large scale project, similar to some of the programs introduced during the Great Depression in order? Would new legislation that gives incentives to various size businesses to keep people on the payroll also make a huge difference? How about forcing lending organizations to open up the credit markets, allowing all types of businesses and non-profits to expand and hire new staff, and also allowing new small businesses to obtain start up monies?
What else do you think would work? We need solutions, so let's hear from you.

Reader Comments (6)
Very interesting...plenty to think about. A lot of people need help soon!
Wow, so much to think about. We definitely need some new tactics to start job creation. I know so many people who are either out of work or are afraid about getting laid off. Maybe we really do need a government led effort to create jobs and get people working again.
Hoping that you might have something to say soon about the current job market for college grads. Some of us don't really know where to turn and a lot of things seem downright depressing. Any thoughts on this would be appreciated. Oh and good luck with the site.
In a time where we are seeing job offers rescinded and the doors of companies closing unexpectedly, it will be imparative that job seekers (and those who assist them) to think outside of the box. One alternative is to educating people on the federal job process. This could even expand into the state and local government as well. Sure, the application process can be a little more involved, but the long term benefits make it all worth exploring. And although the term 'internship' tends to be associated with college students, there are programs that exist for those beyond the undergrad years. Internships facilitate the process of obtaining an invaluable experience that can be leveraged for prospective, full-time positions.
The New York Times also came out with this interesting, interactive graph on unemployment by demographic (see link below). It really highlights, in a startling way, the challenges that young people and minorities are facing in this economic climate. Certainly, the issue of unemployment rates differing by age, race, and sex are nothing new, but are heightened further by what we're dealing with today.
http://www.nytimes.com/interactive/2009/11/06/business/economy/unemployment-lines.html
Looking forward to keeping up with this blog!
Kevin,
I just read that article and found it extremely insightful...especially given Bob Herbert's article.