Congressman Tom Cole
For more than 237 years Americans have sought opportunity and pursued what has come to be known as the American Dream. And even in the midst of a broken economy, that desire still burns brightly in the hearts of most of our fellow countrymen.
Despite President Obama’s promise to create jobs, we still have a severe unemployment problem. While there are many factors hindering job creators, including regulatory costs or Obamacare implementation fees, the American people have yet to see real solutions from the Administration that grow the economy or improve the workforce.
Without question, the uncertainty of the job market has caused financial hardship for many families and individuals across the nation. In December, the civilian unemployment rate, the percentage of workers and job seekers without work, was reported by the Bureau of Labor Statistics as 6.7 percent. While this number declined from the past month, the measurement doesn’t account for those who are underemployed, working part-time or have given up looking for work altogether. The Labor Force Participation Rate (LFPR), which measures the labor force as a percent of the population, provides a better diagnosis of our economic state. Last month, the LFPR dipped down again to a low of 62.8 percent, which is the same figure reported in October 2013. Before October, the LBPR hadn’t been that low since March 1978.
Today, due to job scarcity or inadequate training, people seeking work are staying unemployed longer. Since Obama entered the White House, the average time an individual remains unemployed has shot up from 19.8 weeks to 37.1 weeks. That means the average unemployed individual is long-term unemployed or jobless for more than 27 weeks. To put this in perspective, there are now 3.9 million long-term unemployed individuals as compared with 2.7 million when the president took office. Currently, the long-term unemployed make up 37.7 percent of all unemployed individuals.
These statistics alone should be enough reason to take immediate bipartisan action, and lawmakers can do this by incentivizing job seekers and improving the environment for job creators. House Republicans have already passed dozens of bills that would create jobs; most of which are still awaiting action in the Senate. For example, the SKILLS Act would provide training programs for the long-term unemployed, helping them improve skills and giving them a wider range of job opportunities. Approval of construction of the Keystone pipeline would also provide jobs for American workers.
At the end of December, benefits expired for many long-term unemployed, causing the Senate to introduce and debate legislation for an emergency extension. While I understand the abrupt break in benefits causes financial strain for many Americans, we need to have a clear idea about how these benefits will be paid for before extending them. We already have an exceptionally high deficit of more than $650 billion, and it is unacceptable to add to it without cutting spending elsewhere.
The economy is still recovering, and this has made it difficult for all Americans. Parents want to provide for their families, and young people want to claim the opportunity promised by the American Dream. We cannot ignore those who are still unemployed, but we cannot solve the unemployment crisis without long-term solutions that create jobs and grow the economy.
