White collar unemployment jumped 1.6 percentage points - to 4.6 percent - from December of 2007 to December of 2008. But blue-collar workers are still bearing the largest brunt of unemployment, at 11.3 percent.
The shared pain helps explain the varied priorities in the $800 billion-plus rescue package put together by President Barack Obama and Democrats in Congress. The $50 billion for building roads, bridges and schools addressed the hardest hit of the unemployed first
- hardhat workers.
But there are also piles of wage-producing money for college-educated workers: $62 billion in the House version for health information and renewable energy technology, improving the nation's power grid and scientific research. Getting it all to them will take longer.
Policymakers are also counting on greater public acceptance for social spending
- on the likes of food stamps, unemployment and health insurance - because the victims of the collapse in housing and credit markets cross socio-economic levels.
"The intensity of where we are right now creates a much larger scale of interest by the public," said Lawrence Mishel, president of the liberal Economic Policy Institute. "You need many more sectors to recover and broad-based policies for that are a new challenge."
Republicans complain that too much is being directed to expanding the safety net for assisting victims and argue that tax cuts, particularly those addressed at businesses, will produce more sustainable jobs over the long term.
The one thing both sides agree on is that more jobs are paramount. A Pew Research Center poll shows 76 percent of Democrats and 72 percent of Republicans now rate jobs as the nation's top priority.
The White House economic team, in an analysis earlier this month, concluded the spending would directly create nearly 1.5 million jobs by the end of the fourth quarter of 2010. It also determined the indirect effects
- the pass-along benefits of newly employed workers spending more - would create more than 2.2 million jobs.
Included are 305,000 in direct energy jobs and 166,000 in direct health care jobs. Those jobs would, in turn, indirectly produce another 230,000 jobs, according to the analysis.
Mark Anderson, President of ExecuNet, a Connecticut-based firm that provides recruitment services, said executive recruiters are beginning to show more confidence in the market than they had in November.
