Clock is ticking: We must extend payroll tax cuts and UI

by Secretary Hilda Solis on December 2, 2011 · 9 comments

Our nation’s unemployment rate experienced a significant drop to 8.6 percent in November, a full 1.2 percentage points lower than this time last year. Nonfarm payroll employment added 140,000 private sector jobs last month. This means we’ve added 1.9 million private sector jobs over the past year — an average of 157,000 a month.

Monthy Change in Total Private Emplyment Jan 2008 -- Nov 2011. Source: Bureau of Labor Statistics, Current Employment Statistics Program

The policies this administration has pursued are adding jobs back into the economy, and our recovery is picking up steam. In November, American companies increased hiring across virtually all regions and all sectors to keep pace with growing consumer consumption and demand. Last week we saw people talk with their wallets. One week after soaring Black Friday spending, we are seeing job growth firmly in the black heading into the holidays.

Personal income and consumer spending are both up. Americans are showing more confidence in the economy. Now it’s incumbent upon Washington to give them confidence in our government to solve our biggest challenges and put millions of Americans back to work. This is a strong report, but we can’t forget those Americans who lost their jobs during the recession and are still struggling.

Employment in Major Industries (Over-the-year change, Nov 2010 - Nov 2011). Source: Bureau of Labor Statistics Current Employment Statistics Program

We know what has worked: extending payroll tax cuts and unemployment insurance, and making smart investments in our economy. The clock is ticking. If Congress doesn’t extend emergency unemployment benefits for our long-term unemployed this month, 5 million Americans will lose their benefits next year. These are the everyday heroes of our recovery who have lost their jobs through no fault of their own. They spend all day, every day filling out applications, sending out resumes and looking for work. Now is not the time to turn our backs on them. They deserve better. They deserve action.

Congress must act immediately to extend emergency unemployment benefits and payroll tax relief. We must pass these measures this month to continue the positive trends we’re seeing in today’s report.

{ 9 comments… read them below or add one }

1 Frank the Engineer December 2, 2011 at 7:26 pm

If job performance or growth is back to what it was in 2008 (per the shown graph), then why is the unemployment rate still twice what it was over the 8 years of Bush’s presidency?

2 Guitar Man December 3, 2011 at 8:51 am

Yes, Let’s keep giving money away to people and demotivate them to look for work. Seems to be the way the demo’s want it. Simply at the expense of the taxpayers and an unprecedended debt.
My one man business has to survive by me working. I am a sole supporter of my family. I don’t get free hand-outs. We simply won’t eat if I don’t work. I am surviving by hard work and perserverance (and guess what? There are jobs out there!)
I also know about people who laugh that they get UC after 2 years!
Simply put, You are out of touch!

3 Hotel à Sidi Bel Abbes December 3, 2011 at 10:12 pm

I totally agree with this solution. And let’s remember the government that there are so many people that lost their jobs and need actions now..

4 Jobst Compression December 3, 2011 at 10:15 pm

I remain worried that the 8.6% will be revised. I also am concerned that the unemployment rate is currently not representative of true unemployment.

5 Damp Away cream December 5, 2011 at 11:48 am

I often visited your site this before also and I always enjoyed reading all your share as it’s always refreshing and there is always something new to know here. Great job dude..

6 ethnic bags December 8, 2011 at 3:55 am

We know what has worked: extending payroll tax cuts and unemployment insurance, and making smart investments in our economy
My one man business has to survive by me working. I am a sole supporter of my family. I don’t get free hand-outs

7 Jennifer March 6, 2012 at 9:40 pm

While I’m not usually for ‘free handouts’, dropping 5 million people (and their families) from benefits they need right now is not the answer. I agree with the article wholeheartedly. They have to prove that they are actively searching for work, and while a few might be playing the system, dropping people in their time of need is not the way to go about it.

8 Rob March 29, 2012 at 2:28 pm

In my opinion the economy is again on the right track. If those information are gathered from a reliable source the there are several reasons to cheer about. And I only hope those are actually true and the momentum should continue which has started.

9 http://thedebtsreliefreviews.com July 5, 2012 at 2:50 am

I think – the policies this administration has pursued are adding jobs back into the economy, and our recovery is picking up steam.

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