America is in a hole.  In the gravest threat to our economy since the Great Depression, we are facing rising unemployment; soaring food, energy, and health care costs; growing debts; a shrinking middle class; and widening inequality.To help us climb out, President-Elect Barack Obama plans to spend more than $700 billion on infrastructure projects.  This is promising, to be sure, but we need even more.

If we do this right, the Obama administration’s stimulus package can lay the groundwork for a healthier and more prosperous nation, not just in the months ahead, but for generations to come.  Big problems require big, bold solutions and this crisis requires nothing less than the reimagining of the American city. Let me explain: for decades, public policy has been to pour money into new highways to far-off suburbs, enabling even more sprawl and making us even more dependent on our cars. That kind of thinking is a non-starter. America needs smarter, more targeted spending (in people, places, and projects) that gets a solid return on our investment and actually strengthens communities too often left behind.

But how do we do that?

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Everybody will be focusing today on the scary top-line unemployment number: 7.2 percent. That is frightening for millions of Americans — and portends a truly abysmal job market for anyone looking.

But the Bureau of Labor Statistics report includes something that should really send a cold chill through the labor market: the number of “involuntary part-time” workers has reached 8 million, a massive year-over-year jump and the highest in history.

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The ranks of the underemployed is stunning….and especially worrisome for those just one or two paychecks away from economic ruin. Competition for low-wage jobs will surely increase in the coming months and low-skilled workers will have a much harder time finding new employment if they lose their current job.

That’s why job training, job retraining and apprenticeship programs are so vital. We have to give low-income people — especially young people — the chance to compete in this 21st century economy.

Yes, 7.2 percent is a big, scary number. But, sadly, it may only obscure the true breadth of the problem.

Thanks to Calculated Risk for the graph. If you want to understand the economics of the current downturn, head over there…very digestible and insightful stuff.