The millions of unemployed workers may be becoming a growing underclass
A growing underclass of workers in the United States, millions of unemployed who are not likely, if ever, to return to the labor force, has been created by the Great Recession.
The disability rolls have become a good indicator of the current job market, CNN Money reports. When times are good, workers with modest health problems take jobs whenever they can get them. But when times are bad, and those folks can’t find jobs, they have a tendency of turning to the government and applying for disability. Since it is the Social Security Administration which runs disability programs and they have noticed an increase in applications during other recessions as well, they know it is not fraud which increases applicants. And once on disability, folks are not likely to risk getting out of the program they were accepted into during bad times.
Doug Holtz-Eakin, an economist and the president of the American Action Forum, believes that for some minds in government, expectations are so low that 8.3 percent unemployment is actually ok for them, reports the Daily Caller. Millions of Americans, however, would like to finally get jobs which will cover the costs of their monthly bills, Holtz-Eakin said in the interview.
Talk of an official unemployment rate, as well as another unofficial one where a great number of people have quit looking for jobs simply out of discouragement, is also important to keep in mind says the CS Monitor. Those disheartened workers, including some considered to be only marginally attached to the labor market, are thought to be generally underestimated. The percentage of dejected job seekers estimated in the article to be several times larger than the Bureau of Labor statistics claims.