US / A policy vacuum on jobs?

The Economic Policy Institute have been charting workers missing from the US economy – not working, but not classified as ‘unemployed’ either. As of last month their calculations show over 6 million people of working age fit this category. If these missing workers start looking for work, or are otherwise recognized as being unemployed, the unemployment rate in the US would jump from 7.3% to 10.8%.

There is a policy vacuum on jobs but it is nothing like the political tumbleweed blowing around this economic inactivity. Indeed the situation is likely to deteriorate further as cuts to SNAP (Supplemental Nutrition Assistance Program, better known as Food Stamps) and the ending of extended Federal unemployment insurance (Emergency Unemployment Compensation, EUC, payable to some unemployed individuals after state financial assistance runs out) take hold. The White House have moved on the latter – asking Congress for an extension until the end of 2014. Spokesman Jay Carney:

“These benefits are crucial for maintaining incomes of the unemployed and their families, and it has been shown to reduce poverty and increase the changes of returning the unemployed worker to a good job”

How smoothly this request will pass through the House is yet to be seen, but it is essential to ensuring that more of those currently recorded as unemployed (and regularly jobsearching) don’t join the growing ranks of missing workers.

Chosen excerpts by Job Market Monitor. Read the whole story at 

via Fall in US Unemployed Masks a Deeper Problem | Jane Mansour.