The U.S. labor market remains mired in recession: Employers shed another 467,000 jobs last month; the unemployment rate now stands at 9.5 percent; the economy has lost a record 5.7 million jobs over the past year and 6.5 million since the recession began in December 2007. The breadth and depth of the current recession point towards the continued necessity of spending the recovery dollars to get people back to work.

The underlying news in today’s report, however, is that unemployment remained little changed because so many workers exited the labor force. In June, 358,000 workers reported exiting the labor force, nearly as many as the 374,000 who reported losing a job. This is an indication of the frustration that many are experiencing in trying to find employment—they are simply giving up. The number of discouraged workers has more than doubled to 793,000 since the recession began in December 2007. Indeed, the number of workers who reported being unemployed in May but then out of the labor force in June is 2.6 million—higher than at time since 1990. The share of the population with a job fell to 59.5 percent, the lowest since 1984.

There continues to be evidence that there is more pain down the pipeline. In May, the number of mass layoffs—an announcement of 50 or more employees being laid off—was at an all-time high of 2,933 incidents, indicating that unemployment will continue to rise in the months to come. Some of this may be reflected in June’s employment data, but it may not account for them all if these layoffs were staggered over time. On top of this, hours fell to another historic low in June, with the average worker employed for only 33 hours per week. And the temporary help industry—an indicator of employer’s willingness to take on new workers—continued to hemorrhage jobs last month, losing another 37,600 jobs in June, indicating that employers are under no pressure to begin hiring anytime soon.

Job losses were again widespread in June, with manufacturing and construction showing the largest share of the job losses. So far over the course of this 17-month recession, these two industries have accounted for half—49.6 percent—of total job losses. Manufacturing shed another 136,000 jobs in June for a total of 1.9 million since the recession began in December 2007. There are now fewer manufacturing workers employed in the United States since anytime since 1941. Construction shed another 79,000 jobs in June and 1.3 million jobs since the recession began. The high share of job losses in these two industries explains why men have lost three out of every four jobs lost since the recession began.

Even if layoffs stopped today, the grim news for workers will not end until employers begin to hire again. But employers will not add to payrolls until they see increased demand for their goods and services from domestic or foreign consumers. As long as homeowners continue to see falling home prices and workers see higher unemployment and reduced hours, consumers will be keeping their wallets shut. Since consumer spending accounts for 70 percent of the U.S. economy, the lack of consumer purchasing power will constrain economic growth, and thus employment growth, for some time to come. And because the recession is global, it is unlikely our trading partners will be pulling us out of this quagmire anytime soon.

The American Recovery and Reinvestment Act signed into law swiftly by President Obama is designed to fill in the gap in demand by pumping billions of dollars into communities around the nation. The impact of these funds are only beginning to be felt as projects get up and running, although the tax cuts led to higher take-home pay for workers in April. So far, the Recovery Act is going according to plan—$52.9 billion has gone out the door. The largest job gains from this spending were projected to occur in the late fall through 2010, so the biggest bang is still ahead of us.

One of the biggest threats to the effectiveness of the recovery package is that states are seeing such large declines in tax revenues that they are being forced to cut back—in some cases drastically—in services. This is adding another drag onto local economies while also paring back in many cases the very services that unemployed workers and their families need access to.

Workers who have been laid off are having an exceptionally hard time finding new work. The latest data shows that there are five unemployed workers for every job available. Further, even though record numbers of workers have lost their jobs within the past six months because a new job is hard to find, the share of the unemployed who have been out of work and searching for a job for at least six months hit another all-time high of 29.0 percent. This is especially disturbing given that 3.4 million jobs have been lost within the past six months. In May, the Department of Labor reported that over the past 12 months a record average 49.2 percent of those receiving unemployment benefits exhausted their initial six months of benefits without finding a job. Because of the Recovery Act, these workers are eligible for up to an additional 53 weeks of unemployment benefits, on top of their initial 26 weeks, if they cannot find a job.

The pain of the recession is widespread, with a few demographics seeing their unemployment rates higher than at any point since the Great Depression. The unemployment rate is at an all-time high of 7 percent among workers age 55 and over, and the teen unemployment rate of 24 percent is only one-tenth of a percent shy of its all-time record set in 1982. Among adult white men, the unemployment rate is at a post-Great Depression high of 9.2 percent and the share of men with a job continues its record-breaking downward march—only 67.7 percent of adult men were working in June. Prior to this recession, the share of men with a job had never fallen below 70.5 percent—a record set in 1983.

It continues to be the case that minority workers, teens, and less-educated workers have unemployment rates far higher than the national average. In June, African-American unemployment was 14.7 percent, Hispanic unemployment was 12.2 percent, and unemployment for those without a high school degree was 15.5 percent and for those with only a high school degree was 9.8 percent. African-American and Hispanic workers saw their unemployment rates fall slightly last month, but this was associated with a decline in labor force participation so this is more an indication of how challenging the labor market is rather than a sign of improved employment opportunities.

The Obama administration’s focus on laying the foundation for long-term economic through policies addressing climate change, health care, and financial regulation continue to be critical for the long-term employment situation. At this point, the economy is still under the spell of the massive downward momentum that built up last year as the outgoing Bush administration did little to address the burgeoning economic challenges in the real economy.

At this point, unless we want to embark on another massive stimulus plan, there’s little we can do in the months to come to keep unemployment from rising beyond continuing to provide unemployment benefits and access to health care and other services. But, over the long term, the goal should be getting our economy back on track and growing in a sustainable fashion, while limiting the potential for this kind of finance-led crisis to happen again.

"I mean, how many times have I heard 'we're frozen,' there's no hiring, nothing new, no applications, no nothing," Kaley Graham says.

The number of people fighting to find a job is once again on the rise. Nationally, unemployment spiked to 9.5% Thursday. But in Lee County, it's even worse: 12.4%.

"Where to look? Where to go? I mean, where do you start?" Graham says. "I don't know where to start."

Overwhelmed and unemployed, Kaley Graham says she needs to work. Just three months ago the 17-year-old was diagnosed with cancer.

"It's just like, when it rains it pours," she says. "It's just one thing after another and I just want things to work out."

The scar stretching across her neck marks emergency surgery to remove her thyroid. But with no job and no insurance, her medical bills are stacking up.

"I've gotten bills $40,000 here, $50,000 there -- outrageous amounts," Graham says.

Kaley can't rely on her mom for help either. She too is unemployed.

"It's like it's so depressing and devastating that you want to cry all the time," Lou Graham says.

Instead, the two are being proactive using the Career and Service Center to job hunt, refresh resumes, and look for government assistance.

The center says the number of people on long-term unemployment is on the rise. Kaley and her mom are just two of the 34,000 people in Lee County who don't have a job.

"At 12.4%, that's a historic high for us," Barbara Hartman, spokeswoman for the center, says.

But in reality, the number of unemployed is likely closer to 40,000.

"The numbers only reflect those who were looking for work within the last four weeks of the survey," Hartman says.

Hartman says many people have given up the search or taken a hiatus because they can't find anything. Those people are not included in the new unemployment figures.

"It's where you are right now, and right now it's hard," Kaley Graham says. "It's very hard."

Hartman says there is a bright spot ahead. The national census will soon set up shop here in Fort Myers to hire management positions. She also says once the tourist season returns, we should see a bump up in new hires.

One way job seekers seek assistance in the job search is by working with a recruiter who can help them find leads and opportunities. When it comes to choosing a recruiter, understanding the myths and benefits of working with a recruiter can help you maximize your efforts, says Karen Kodzik, owner and career counselor with Cultivating Careers, which serves people in mid-career who believe in actively managing their career opportunities.
Here are some misnomers and advantages of working with recruiters from Kodzik, which she has compiled through regular conversations with recruiters and search firm professionals:
Myth #1: Search firms find jobs for you
In frequent conversations with recruiters, I hear their frustration with the number of times job seekers approach them and expect a full-scale job search. The truth is that recruiters work for employers. If your qualifications and experience align with a job opening a recruiter is presently trying to fill, they will be happy to talk to you. If there isn’t a match, they will not look for other opportunities for you. The number one objective for the recruiter is to fill a job opening for an employer.
Myth #2: Recruiters will help you figure out a new career path
Recruiters are in the business of “match making” qualified candidates with a specific job. If you don’t match the essential qualifications of the job the recruiter is working on, you cannot expect the recruiter to help you figure out a new dream job. That is the role of a career counselor or coach.
Myth #3: All recruiter advice is the same
Too often I hear my clients tell me “a recruiter told me…” Recruiters differ by their area of expertise. Their expertise can vary by types of jobs they fill. Jobs vary by level (executive, management, non-management), profession (IT, sales, finance, etc.) and industry (healthcare, manufacturing, retail, etc.), so not all recruiters can speak across specialties. For example, resume advice from an IT recruiter may not be as useful to a CPA candidate.
Myth #4: A recruiter will help you create a resume
Remember, the recruiter doesn’t work for you. You are responsible for coming to the recruiter with a professional resume that is current, focused, and accomplishment oriented. If you match the criteria for a job the recruiter is working on, the recruiter may offer some suggestions on how to “package” the resume so it highlights certain things about your background.
Now let’s look at the benefits of working with a recruiter:
Benefit # 1: You will be in a smaller select pool
If you match the qualifications of a job the recruiter is working on, you are automatically in a smaller pool of candidates, therefore giving you an increased chance of being the chosen one vs. being 1 of 200 resumes.
Benefit #2: You will have a “promoter”
If you are selected to be in the pool of candidates, the recruiter promotes your strengths and assets to the employer. The recruiter will also help the employer connect the dots between your work experience and the open job.
Benefit # 3: You can get great information
If you are lucky enough to get some face time with a recruiter, they can provide great insights about trends in industries and compensation, professional must-have skills, and a company’s culture.
“A recruiter recently told me that 3-5% of jobs are found through search firms,” says Kodzik. “With that in mind, recruiters should certainly be a part of your job search, just not the only part.”
For more information: Karen Kodzik is the owner and a career counselor with Cultivating Careers, serving people in mid-career who believe in actively managing their career opportunities. She can be reached at karen@cultivatingcareers.com or 651.387.2676. Kodzik offers a free 30-minute consultation to prospective new clients. If you have concerns about your job search or need career advice, give her a call or send her an email to find out how she can help you.

CLINTON - Anne Phillips says a whistle-blowing letter she wrote about sexual harassment and abuse of power within Anderson County's Probation Department caused her to be canned.

Should jurors today agree, their verdict has already been slashed to $3,992 at most.

Senior Judge Jon Kerry Blackwood late Tuesday granted a motion limiting any judgment in Phillips' lawsuit against Anderson County and County Mayor Rex Lynch.

Phillips, a former two-time Republican nominee for state representative, had sued for $500,000 over her alleged termination in May 2004 from her county job.

She contends Lynch wrongfully fired her because she refused to remain silent about alleged illegal activities within the county's probation department.

But the judge ruled that if jurors return a judgment in her favor, Phillips is only entitled to the last few weeks of her salary as director of a probation program for women with drug convictions.

Dubbed the "Ladder of Hope," the program was funded by a federal grant administered by the state and was to run three years.

But allegations of sexual harassment, abuse of power and misuse of grant funds prompted the state to shut it down during its first year.

Most of the controversy swirled around then-Probation Department Director Alan Beauchamp.

While the program was ramping up, Beauchamp came under Tennessee Bureau of Investigation scrutiny for alleged improper relationships with women on probation.

Lynch briefly suspended him as probation department director but he was reinstated after then-District Attorney Jim Ramsey ended the TBI probe, citing lack of evidence.

Lynch later disbanded the county-run probation department.

Phillips on Tuesday testified about a probation department "in turmoil" while she was director of the Ladder of Hope.

She wrote a letter to Lynch in November 2003, listing some of her concerns.

Beauchamp had threatened some of the women on probation, she wrote, and she'd seen him "discussing sexually inappropriate topics among the women and using foul and filthy language."

Lynch pocketed the letter and apparently never read it, Phillips testified.

Lynch later became "very angry" when the contents of the letter were leaked, apparently from his office, said Phillips' attorney, David Stuart.

Phillips said she became aware in early April 2004 that the Ladder of Hope's days were numbered after the state sent a letter listing its shortfalls.

The matter came to a head a month later, when she was summoned into then-budget director Gail Cook's office and Lynch told her the program was shutting down in two days.

"(Lynch) said I had to turn in a final report, and I said I couldn't turn in a final report in two days," Phillips testified.

"He asked me to make something up," she said.

Phillips said two county employees came to her office a short time later and told her to give them the key to her office and her computer. She said she was escorted from the building in tears.

Phillips was the only person to testify Tuesday. The county's witnesses are slated to take the stand today.

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