(The AFL-CIO issued the following statement on May 9.)
WASHINGTON — Last month’s jobs gain is an encouraging sign for America’s working families, but we must be sure that the employment growth is not just another blip on our economic radar. There are many signs that the economy will weaken before it can sustain job gains and improvements in real wages. In reality, the current recovery has generated fewer new jobs and wage gains than any recovery since the end of World War II.
Long-term unemployment remains a serious problem for many working families. More than seven million workers are unemployed, and over 20 percent of them have been unemployed for 27 weeks or more. Despite last month’s job growth, millions of workers are still struggling to find good-paying jobs and pay for out-of-control health care costs.
Meanwhile the Federal Reserve, ignoring economic weakness and its effects on workers, continues its relentless campaign to raise interest rates. Last month, the Fed raised interest rates for the eighth time. This steady tightening of money supply together with continuing federal budget deficits will surely cause interest rates to rise — the last thing our beleaguered manufacturing sector needs. Working families need an economic policy that produces a stronger and more balanced economy, an economy that pays all workers family supporting wages and provides health and retirement benefits. Anything less will continue to erode our nation’s middle-class.