by Peter Morici • FoxNews
The U.S. economy created only 142,000 jobs in August, down from 212,000 in July, indicating the economy significantly slowed this summer.
Job creation is well below the pace needed to reemploy all the workers displaced during the financial crisis—the economy is in crisis!
Although official GDP estimates indicate the economy expanded in the second quarter at a torrid pace—4.2. percent—much of that was inventory build, as consumer spending continued to drag along at a nonplus pace and capital investment, especially in manufacturing, remains subpar.
The official jobless rate is down to 6.1 percent but real unemployment is closer to 18 percent, because so many prime aged adults are sitting out the party.
I think the poor need another Reagan in the White House.
The income of black heads-of-households dropped by 10.9 percent from June 2009 to June 2013. This decline in black income is more than double the overall 4.4 percent drop nationally in real, adjusted for inflation, median household income during the same four years of alleged “recovery.”
Similarly, real incomes of those under age 25 fell by 9.6 percent over the same period — again, more than double the average drop in household income. Continue reading
How do you know the August jobs report was pretty bad? When the best thing you can say is that it might have met Wall Street expectations if not for a temporary shutdown in the porn industry last month. (The motion picture and sound recording industry lost 22,000 jobs in August, according to the BLS.) Sure, the White House can argue, as economic adviser Jason Furman did right after the report’s release, that the “incoming economic data broadly suggest that the recovery continues to make progress.” But consider the following:
1. This was the jobs report that was supposed to reflect an economy kicking into higher gear. Goldman Sachs, for instance, was looking for 200,000 net new jobs. And whisper estimates were even higher. Instead, the economy added just 169,000 jobs vs. the 180,000 consensus forecast. Continue reading
The “labor force participation rate” hit a record low hit at 63.2 percent. This represents the percentage of Americans over the age of 16 who have jobs (even if it is part-time or just a temporary job), or are looking for a job. That is according to the Bureau of Labor Statistics’ job numbers released this past Friday.
So after Barack Obama has been in office for 4 and 1/2 years and spent trillions on stimulus, we have a record low number of Americans over the age of 16 who have any job at all or are even optimistic enough to be looking for a job. Almost 40% of the American population over the age of 16 is unemployed or so depressed that they’ve given up looking for work. That is not good news, despite Obama’s claims that we are heading in the right direction.
Jimmy Carter must be smiling because before last Friday, he held the record for the worst labor force participation rate. Continue reading
The left and “progressives” love to blame wage stagnation on greedy businesses wanting to gobble a larger share of the pie. But it’s actually a product of businesses’ uncertainty about taxes, regulations and employee-benefit costs — which the Obama administration has exacerbated.
Merrill Matthews, resident scholar at the nonpartisan, free-market Institute for Policy Innovation, notes that fresh U.S. Labor Department data show nongovernment, nonsupervisory workers’ average hourly wages, adjusted for inflation, have fallen 0.9 percent since the recession ended in June 2009 — “since, well, President Obama’s economic policies were put in place.” Continue reading