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Those Jobs Numbers Really Aren’t So Good Afterall

Oh… so for those people still believing in “Green Shoots” – we’ve got a bridge to sell you in Brooklyn too.

Investors.com penned a nice article
 explaining the ugly truth about those November job numbers:

Economy: A rip-roarer for job creation and a major drop in the unemployment rate. At least, that’s how the mainstream media sum up November’s job numbers. But scratch the data and a different story surfaces.

A lot of pundits thought the November jobs data were pretty good, with 146,000 new jobs and a drop in unemployment to 7.7%. But look closer, and you see recession mode.

With nonfarm payrolls swelling by 146,000 and the jobless rate easing from 7.9% to 7.7%, November looked pretty good to many pundits. But the underlying trends aren’t so favorable, and the future, with a slowing economy about to drive off a fiscal cliff, isn’t bright at all.

Start with payroll jobs. The 146,000 wasn’t awful, but to make a serious dent in joblessness, we need to add at least 200,000 a month for a prolonged period. In this poisoned atmosphere for business, that won’t happen.

Since 2011, businesses have added about 151,000 jobs a month. But since June that’s slowed to just 139,000. We’re clearly going the wrong way.

And by the way, remember those big payroll gains in September and October, right before the election? Forget it. The Labor Department has revised down its job estimates for those two months by 49,000.

OK, but we still have private-sector job growth, right? Not really. In the last six months, 621,000 of the 847,000 new jobs created have been in government, not the private sector, according to CNSNews.com. That’s 73% of all jobs — not a healthy labor market.

As for that big “drop” in the unemployment rate, all of it was due to the fact that 540,000 Americans are no longer looking for work. They either dropped out, took early disability or retired. Since the start of 2009, 9.7 million Americans have fallen into this category.

All told, more than 24 million Americans who want jobs don’t have them, driving the labor force participation rate to 63.6%, just above August’s 31-year low of 63.5%. This is the worst labor market in a recovery ever.

And it may get worse. The quarterly Wells Fargo/Gallup small-business survey found that 21% plan to cut jobs over the next six months — a surge from 10% last June and a record high.

IBD’s own research shows that small businesses account for nearly 80% of all new job creation in America. A small-business slump means no jobs. It’s that simple.

Why is the labor market refusing to recover as it has in the past, with millions of new jobs each year amid rapid economic growth? In a word, Obamanomics.

Thanks to ObamaCare, “stimulus” spending of $860 billion, threats of higher tax rates on small business owners and entrepreneurs, the economy’s going nowhere. We may soon enter a new small-business recession that can be blamed on no one but Barack Obama.

Jobs newspaper add unemployment pic

photo: photologue_np via Flickr

Of course one must also understand the government’s skewed definition of unemployment.. which does not include people who have given up looking for jobs .. one commenter to this article said, “540,000 Americans are no longer looking for work. They either dropped out, took early disability or retired. Since the start of 2009, 9.7 million Americans have fallen into this category.”

Yet another commenter added, “The seasonably adjusted U-6 metric — that is, the total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force — was 14.4 percent.”

That’s pretty sobering news. 

…and there are a record number of people on food stamps, disability and other entitlement programs.

Thanks to Obamacare mandates, there will be plenty of companies laying off employees and even more who will cut hours to avoid the mandates.

Green Shoots?
More like a crock of…. well, you know.

 

Judy Aron Consent of the Governed

About the Author

Judy Aron lives with her husband Michael in CT. They have three grown children who were homeschooled and are now successfully pursuing careers. Judy earned her Bachelor’s degree in Economics, Magna Cum Laude, with minors in Business Administration and Computer Science from the State University of New York at New Paltz.

Judy has been involved in politics for over 15 years. Judy has written many articles on various aspects of education at home and in public and private schools. She has been published in magazines and online, and has been interviewed on radio and in print.

She served as Vice President of Connecticut Homeschool Network (CHN) and was their legislative liaison. She now serves as Research Director for National Home Education Legal Defense (NHELD) providing parents across the nation with important information on legislative issues concerning parental rights and education.

Judy is the author of the blog “Consent of the Governed“

Most recently, Judy has been involved in various organizations and efforts to Restore the Republic, End/Audit the Federal Reserve, and to educate the public about the issues regarding their Liberty and Freedom, and is working to put a halt to the erosion of our rights. Judy is a fan of Ayn Rand, Seinfeld, Star Trek, Peter Schiff, Judge Andrew Napolitano, The Founders, JPFO, Appleseed, Von Mises, John Taylor Gatto, Wallace and Gromit, Dick Heller and Ruger (not in that order).

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About the Author

- Judy Aron is the author of the Libertarian Blog "Consent of the Governed" Judy has been involved in politics for over 15 years. Judy has written many articles on various aspects of education at home and in public and private schools. She has been published in magazines and online, and has been interviewed on radio and in print.

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