Helen Zivar
According to recent data from the U.S. Bureau of Labor Statistics (BLS), the unemployment rate rose to 3.8% in August, an increase of 514,000 people since July, reaching a total of 6.4 million. While the Biden administration and the monopoly media boast that the economy is strong and the unemployment rate is low, the fact remains that 6,400,000 workers have been fired from their jobs for no fault of their own, are looking for a job and haven’t been able to find one.
The BLS report added that 4.2 million workers were working part-time for economic reasons—meaning they wanted a full-time job but had to work part-time because their hours had been reduced or they were unable to find full-time jobs. In addition to these two groups, 5.4 million people wanted a job but were not counted in the labor force because they were not actively looking for work during the month prior to data collection. So the total number of workers who want a full-time job but have not been able to find one was 16 million in July, or 10% of the U.S. labor force.
Many people in the US receiving unemployment insurance remain under the official poverty threshold despite being unemployed at no fault of their own. Meanwhile, according to data from 2020, over 3 million workers who worked full-time for at least half of the year were living below the poverty threshold; this does not include the workers’ children and other dependents.
Unemployment is a phenomenon inherent in capitalism. The development in the efficiency and automation of machinery and tools of production result in an increasing number of workers being cast out of the workforce. The very machines and technological developments workers make serve as the basis for their exclusion from the workforce as part of the capitalist race for profits.For example, an estimated 30% fewer workers are needed to manufacture electric vehicles than internal combustion vehicles.
At the same time, unemployment increases competition among workers, decreases their bargaining ability, and drives down wages. Looking again at the auto industry, real wages for production workers are down 20% since 2000 according to the AFL-CIO, and more drops are on the way with the “EV transition.”
With higher unemployment and the declining technical needs of the labor market, capitalists can more easily outmaneuver striking workers and replace workforces entirely with scabs. Workers will find it more difficult organizing for higher wages and better conditions when there are millions desperate for work. Conversely, when there is low or no unemployment, workers have more leverage over their bosses because production will not be able to continue without their participation, forcing the capitalist to the bargaining table.
