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World of Labor 1-9-10

January 9, 2010

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U.S. Loses 85,000 Jobs in December 2009, Clouding Talk of Recovery
Despite optimistic talk that the nation had recovered from the economic recession, the U.S. Bureau of Labor Statistics reported that 85,000 jobs had been lost in Dec. 2009. There are now, by government account, some 24 million people who are unemployed or without full-time work. The number of long-time unemployed (those without work for 27 weeks or more) has risen to 6.1 million.

At a news conference, President Obama acknowledged the December data as a setback, while outlining plans to deliver $2.3 billion in tax credits to spur manufacturing jobs in clean energy. "We have to continue to explore every avenue to accelerate the return to hiring," the president told reporters. AFL-CIO President Richard Trumka, who has been pushing his 5-point job creation plan, commented that the current economic crisis has taken "years of financial abuses and corporate giveaways to get us into this deep hole."

Most economists assume that the unemployment rate-which remained steady at 10 percent in December-will worsen in the coming months. The nation would then confront the highest jobless rate in a generation on the eve of November 2010 elections that will determine the balance of power in Congress.

Trade Unions See Problems with Burma Wage Increase
A salary increase for civil service workers in Burma is necessary, but it will severely strain the country's budget and "damage the public," a Burmese trade union coalition has said. Nearly two million people are said to benefit from the increase, which was announced by the government at the end of last year and could, in some cases, more than double salaries.

But heavy spending on the military and infrastructural development projects, along with the billions channeled into building the new capital, Naypydaw, has weakened the Burmese economy, despite its considerable sales of energy and natural resources. The Federation of Trade Unions Burma (FTUB) has raised concerns about distributing the salary increase as it could have dangerous consequences for the economy.

Inflation in Burma, one of the world's poorest countries, is already at nearly 30 percent The lowest-paid civil service workers will receive a monthly increase of 15,000 kyat ($15) and the mid-level worker will get $80). According to the U.S. State Department, the average annual wage for Burmese citizens is less than $200.

Japan Features Capsule-Sized Homes for Poor Workers
Satoshi Mitura crawled into his rented room, dropping his bag in the corner. It didn't take long to get settled-home tonight is a capsule. The rooms are boxes about the size of a coffin in this capsulized hotel. But no matter, says 45-year-old Mitura. He's only there to sleep before looking for work. For Mitura, he has everything he needs: a bed, a TV and radio. On the ground floor, there is a shared bath and sauna.

Most important, it's cheap. The capsules cost about $30 a night. If he had to stay for a month, it would cost $700 to $1,000, a housing bargain in Tokyo, ranked as the world's most expensive city. The cost is why capsule housing is attracting a new kind of resident, the working poor.

The emergence of the working poor in the world's second biggest economy has shocked a public used to the image of a rich and egalitarian nation with lifetime employment for its citizens. The Japanese government reports a 15.7 percent poverty rate, With the exception of the United States, Japan has the highest poverty rate among industrialized nations.

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