U.S. Losing 500,000 jobs per month

The U.S. economy is losing 500,000 jobs per month.

The graphic at the left (courtesy of Paul Krugman) shows the ratio of employed to total population.

"By this measure it’s been a weak economy all along — and now it’s falling off a cliff," wrote Paul Krugman in his blog.

State Governors convening for their annual conference in Philadelphia reported that for every $1 billion in additional Federal government spending, 40,000 jobs would be created.

Just to erase the current rate of job loss, the investment required is $12.5 billion per month or $150 billion per year.

This is why providing U.S. automakers a loan is so crucial. But it needs to come with job preservation. This is no time to restructure on the backs of workers. Surely smart managers can figure out how to create innovate work schedules to preserve jobs.