Unemployment Rocking a Sinking Ship

Unemployment Rocking a Sinking Ship

Unemployment Rocking a Sinking Ship

There is no question that our current economy is challenging. That poor economy has started an avalanche of job losses. Those job losses are shedding light on cultural and moral weaknesses our country lives in denial of.

In a recent meeting with a U.S. Congressman a group of small business owners were asked their opinion concerning the extension of unemployment benefits. They shared that while many were in need, there were many others that were happy to take the lower income in exchange for not working. A constant experience shared by the group spanning multiple industries was that of unemployed applying who when asked, refused an interview because "I am just making my two contacts to keep my unemployment."

According to Bloomberg Business Week and the Associated Press on November 23, 2010:

Iowa added more than 8,000 jobs but the state's unemployment rate remains at 6.7 percent for October, unchanged from September.

Iowa Workforce Development released the latest jobless numbers Tuesday, showing that 112,400 Iowans were unemployed in October. That is up from October 2009 when 108,000 Iowans were without work.

The state's jobless rate a year ago stood at 6.5 percent.

The Des Moines Register reports the area of largest job growth in October was in temporary workers. Kerry Koonce, an Iowa Workforce Development spokeswoman, says manufacturing companies traditionally hire temporary workers before committing to full-time employees.

Elisabeth Buck, the agency's director, says that after two quarters of weak job growth, Iowa companies increased their hiring at a strong pace in October.

Bill Burch, of Commercial Resources, Inc., a Professional Employer Organization, is also involved in the Employer's Council of Iowa which is a state sponsored effort to increase communication between the Iowa Workforce Development and employers around the state. Burch commented, "Our businesses watched unemployed apply only to decline interviews making required contacts to maintain their unemployment. The state and federal government continued to extend benefits resulting in increased UI rates. Small businesses with perfect track records and no layoffs have seen their rates increase substantially. After enough pain is felt by the employer they will be passed onto the customer, in effect creating another tax, one that is hidden and disguised as something else."

When asked his opinion concerning possible solutions Burch replied, "People need to step back from the sensational emotion of any specific niche. We are sorely blind to the administrative costs government charges each system and what is produced for that cost. For example, who is going to understand that they are paying higher prices for their food at the grocery store because unemployment rates went up?"

There is no question that all spending will have to be paid for, barring government insolvency. The real questions are more about who will pay and what are they really paying for?

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