Don’t Blame Extension of Jobless Benefits for unemployment levels

According to a paper by the Federal Reserve Bank of San Francisco, the high duration of unemployment has a “quite small” relationship with the maximum amount of time one can draw unemployment benefits. From the Wall Street Journal:

“Extended [unemployment insurance] benefits have had a relatively modest effect” on the jobless rate. “We calculate that, in the absence of extended benefits, the unemployment rate would have been about 0.4 percentage point lower at the end of 2009, or about 9.6% rather than 10.0%.”

The paper notes the economic crisis of the last few years has generated an “unprecedented” level of unemployment duration. Those unemployed for more than six months hit 4.3% in March, “well above” the previous high of 2.6% in 1983. The economists note that the current situation is all the more striking because the unemployment rate peak was quite a bit higher in that downturn, relative to what’s been seen in this episode.

With all the rhetoric out there that unemployment insurance is actually raising unemployment, it is refreshing to see some statistics that show that extended unemployment benefits do not encourage job seekers to quit.

Read the full article: http://blogs.wsj.com/economics/2010/04/19/dont-blame-unemployment-extension-for-high-jobless-rate/

Survey of Kalamazoo County shows tie between joblessness, homelessness

Some interesting statistics from the point-in-time survey in Kalamazoo were released this week:

• For the third straight year, unemployment was the top reason homeless people in Kalamazoo County gave on how they ended up without a permanent residence, according to the findings of a point-in-time count performed in late January.
• About 20 percent of those surveyed at homeless and drop-in day shelters and other areas around the county on Jan. 27 said that inability to find work or the loss of a job had led them to lose their homes, stay in shelters or in transitional housing or to reside with friends or family — all circumstances defined as homelessness.
• Among those surveyed, the employment rate fell from 31 percent to 24 percent between 2009 and 2010. During the same period, the number of adults in the survey with an education beyond high school rose to 36 percent from 30 percent.
• The total number of homeless households dropped from 549, representing 985 people, in January 2009 to 409 households, representing 650 people, in January of this year.
• The number of children in homeless households dropped from 402 in 2009 to 238 in the January 2010 count.

Read the full article: http://www.mlive.com/news/kalamazoo/index.ssf/2010/04/survey_of_kalamazoo_county_sho.html

Count of Homeless Students in Michigan Schools Increases by 96% in One Year

"Michigan Department of Education officials say they're only now starting to get a handle on how many students statewide are homeless. And the numbers they've collected are startling.

The number of homeless students enrolled across Michigan jumped from 7,500 in the 2007-08 school year to 14,682 in the 2008-09 school year -- a 96% increase.

A big reason is the economic situation in Michigan, which has led to massive unemployment and home foreclosures . Another reason is more accurate counting required of school districts under McKinney-Vento ...

... Kathleen Kropf, Macomb Intermediate School District's Homeless Education Liaison, said between 75% and 80% of the county's homeless students in the past year have never been homeless before."We are seeing a whole new group, mainly our middle-class citizens who have lost their jobs, and therefore their homes," Kropf said."

- Detroit Free Press

www.freep.com/article/20100418/NEWS05/4180582/1320/School-districts-face-more-homeless-students

Shutting Off Utilities for the Poor Causes Rash of Illegal and Unsafe Electric Hookups

"On a recent sunny morning, Mark Johnson, head of DTE's revenue protection unit, drove through east-side Detroit neighborhoods pointing out illegal electric hookups.

At a complex of 12 apartments on Whittier in Detroit, all of the meter boxes had been opened and rigged with wires that span the bare connectors and allow power to flow into the units without being measured.

"That's 240 volts going through wires that are barely heavy enough to power a light switch," says Johnson, whose 61-man crew dismantles up to 500 illegal hookups a day. "If someone brushes up against that box, they're gone."

A few blocks away on Kilbourne, a 14-gauge wire runs from a utility pole into a tumble-down home that appears to be barely habitable. The wire snakes across piles of garbage and brush in the backyard before slipping through a hole in the exterior wall.

It's a fire waiting to happen. If a refrigerator or large space heater kicks on, the load could cause the wire to overheat and ignite any combustible material it contacts.

That's what may have happened in two fatal fires last month in Detroit. On March 4, a home on Bangor Street with an illegal hookup burned down, killing Travion Young, 5; Fantasia Young, 4; and Salena Young, 3. Two weeks later, a flophouse in the Cass Corridor burned, killing boarder Travis Marshall, 26. A witness said the illegal wire strung from the electric pole to the back of the hotel was glowing red before the fire started.

For advocates of the poor, the answer is simple: If DTE would stop disconnecting electric and gas services, the need for illegal hook-ups -- and the fire deaths -- would go away."

- The Detroit News

www.detnews.com/article/20100416/OPINION03/4160390/Electricity-theft-rising-in-Detroit

Unemployment climbs among black men even as nationwide jobless rates level off

Yesterday I wrote that the face of poverty was changing in West Michigan and the United States as more suburban families lose their jobs. I stand by this claim.

However, as jobless rates are beginning to level off nation-wide, unemployment for black men is still rising. The Problem is that even before the recession began, black men were already struggling. The recession has brought necessary attention to their plight, but has only exacerbated the situation. From the Kalamazoo Gazette:

As the grip of the recession eases, U.S. unemployment has leveled off at 9.7 percent for the past three months. But unemployment among black males hit a record 19 percent in March. And in Michigan, the 2009 jobless rate was worse than one in four for the black male population: 26 percent.

"One of the hard realities is, whether you are being released from work like myself, or you've been just getting out of prison, the situation is pretty much the same," Beattie said. "As far as looking for a job, you're a black male."

Beattie, 53, got cut by his longtime employer in January 2009, a year when office furniture sales plunged more than 30 percent industrywide.

"I was one of the folks they didn't want to let go," he said. "Prejudice didn't have anything to do with it."

But once he joined the swelling crowd of jobless, the search quickly turned sour.

"The pool is large, and the opportunities are starting to shrink, especially for someone who was not a majority class. When you're in an employers' market, folks are going to go for the known."

Nationwide, men of all races have borne the brunt of the recession. Since 2007, four of every five jobs lost were from male-dominated categories.

"It has affected men more than women, dramatically more so," labor analyst Jason Palmer said. "And it's affected black men more than white men. A lot of jobs that were lost were tough, lower-skilled jobs."

Read the full Article: http://www.mlive.com/business/west-michigan/index.ssf/2010/04/unemployment_climbs_among_blac.html

The face of poverty is changing

The face of poverty is clearly changing. It seems no longer are the days where poverty was an either an urban or rural challenge; it is now hitting suburban neighborhoods hard as well. In West Michigan, suburban unemployment is much higher than any economic recession of recent times.

According to the Brookings study, West Michigan suburban unemployment grew by 46 percent from 2007 to 2008, compared to 44 percent in Grand Rapids. The suburban figures include Kent County outside the city, and Barry, Newaygo and Ionia counties, all part of the same Standard Metropolitan Statistical Area.

What does this mean? That it is even more important we reserve judgments about those who struggle with financial instability and poverty. In fact, the rise in suburban areas for food stamp use has seen a higher increase in suburban areas than urban areas, though urban counties remain home to a larger number of recipients.


One families story is detailed here:

"I think some people would be surprised to know some of the situations that people are in," said Moore, 29.

The Belmont resident lost his tool-and-die job in 2009 and later, his suburban home to foreclosure.

He and his wife, Hope, 32, now reside with their two children in a single-wide mobile home as they apply for food stamps for the first time in their lives.

Enrolled in a state retraining program for computer technology, Moore is determined to remain optimistic.

"I think with some training and a little bit of time, we'll build back up again," he said.

Read the full article: http://www.mlive.com/news/grand-rapids/index.ssf/2010/04/report_shows_recession_hitting.html

New Orleans to Detroit March Seeks to "Fulfill the Dream"

"In 1967, Martin Luther King Jr. urged the nation's dispossessed to 'organize a revolution' against the injustice of poverty. Forty-three years later, the Poor People's Economic Human Rights Campaign has organized a march hoping to revive that call.

The "March to fulfill the dream" began last week in New Orleans and will end in Detroit, culminating in the U.S. Social Forum June 22-26. Organizers say thousands will participate in the march, which will cover 2,300 miles and 24 cities in 12 weeks."

- MLIVE.com

For more information, see:

www.mlive.com/news/detroit/index.ssf/2010/04/new_orleans_to_detroit_march_s.html

United States Has Lowest Tax Burden of G7 Nations

According to the Christian Science Monitor, "With the April 15 filing deadline in view, American taxpayers may be surprised to find that their tax burden is less than those in most industrialized countries." Indeed, the United States "... matches Japan for the lowest ratio of tax revenue to gross domestic product (GDP) among the G-7 nations. France and Italy score highest."

The G7 nations include: Canada, France, Germany, Italy, Japan, the United Kingdom, and the U.S.A.

For more information, see:

www.csmonitor.com/USA/2010/0411/US-tax-bite-smaller-than-other-nations

Not just a number: At 56, former woodworker is not a 'hot commodity'

Michigan Job Search is asking readers to share their stories long-term unemployment to put a face on the unemployed. This powerful story covers the heartbreaking story of 56 year-old Ken Benjamin's struggle to find a job.

I have been unemployed since October 2008, and I have only one week of unemployment left. I am a 56-year-old husband, the father of three adult daughters and the grandfather of seven wonderful grandkids.

I worked at a company that builds grandfather clocks for 15 years and was laid off from there. Then, I took a job building store display units from blue prints, even though it was a 30-minute drive (when gas prices when through the roof) and I took a pay cut. I worked there for five years until I was laid off in October 2008.

I have worked in the woodworking industry for just about all of my adult life (30+ years). I am a wood craftsman. I tried to start my own business, but no one wants to buy what I build in this economy. I even went out of Michigan to try to sell some things I built. Again, no success. I love to build with wood, to study the pattern of the wood and to create something with my own hands that will be an heirloom that can be passed down through the generations.

No one wants to hire a 56-year-old man when they can hire someone younger. They want someone in their 20s or 30s, with 30 years experience! For minimum wage!

I am in the "No Worker Left Behind" program, and I have applied and applied and applied for jobs. At 56, I am not a hot commodity. But I am not just a number! I am a man who wants to work, who wants to spoil my grandchildren and to support my wife.

I don't want to have to worry about how I am going to make my house payment, my car payment or replace the brakes on our 1998 minivan. Please extend unemployment so I have more time to look for a job and PLEASE help me find a job doing what I am skilled at instead of having to be on unemployment.

Ken Benjamin

For all the rhetoric out there about people being lazy or irresponsible for being unemployed, this puts a real face on someone who is trying to make it but cannot seem to get there. We need to do more to take care of each other in this troubled time, and refrain from making quick judgments about those who are in hard times.

Read the article at: http://www.mlive.com/michigan-job-search/index.ssf/2010/04/not_just_a_number_at_56_former_woodworke.html

Researchers find Michigan tax credits well spent on job creation

So it appears there are some initiatives existing in Michigan that actually ARE creating jobs at a high return. Michigan Tax Credits are proving well beyond their worth, with every $3,500 spent returning $20,000 to the economy. From the Kalamazoo Gazette:

Researchers for the Upjohn Institute found the Michigan Economic Growth Authority tax credits spend about $3,500 to create one job for one year, but those "job years" spur more than $20,000 in economic benefits for the state.

"When you bring additional job growth to a state or local area, you increase wage rates, allowing some people to get better paying jobs," Upjohn Senior Economist Tim Bartik said. "Those benefits are worth something to people.

"Higher employment rates and higher wage rates are worth quite a bit to people -- especially now."

According to the study, which Bartik co-authored with Senior Economist George Erickcek, for each job that received a MEGA incentive, nearly three more jobs were created.

"The program has high economic benefits because of its high multiplier effect," Erickcek said in a statement.

And MEGA grants increased tax revenues faster than public service costs, the study found.

"These fiscal benefits for the state offset about two-thirds of the financial costs of the MEGA credits," Erickcek said.

The report looks at the economic impact of MEGA compared to the alternative of funneling its resources to other government spending. In doing so, researchers estimate the program increased the state's employment by 18,000 jobs between 1996 when it was created and 2007, according to the report.

Read the full article: http://www.mlive.com/business/west-michigan/index.ssf/2010/04/researchers_find_michigan_tax.html