American Elephants

We Need To Add 200,000 Jobs Every Month. Not Happening. by The Elephant's Child

The media is loudly celebrating the bullish November jobs numbers, but, surprise, they’re lying to you. November preliminary jobs data show 146,000 new jobs and a drop in unemployment to 7.7% — so what’s the matter with that? The jobless rate fell slightly from 7.9% to 7.7 % but to make a real dent in unemployment, we have to add at least 200,000 jobs a month for a prolonged period.

Since 2011, businesses have added about 151,000 jobs a month. If you remember, just before the election, there were big payroll gains in September and October? Nevermind. The Labor Department has revised down its job estimates for those two months by 49,000. But we still have job growth in the private sector, right? Not really.  In the last six months, 621,000 of the 847,000 new jobs created have been in government. They’re all working in the White House for really big salaries. (Just kidding with that last sentence).

The atmosphere for business is poisonous. That big “drop” in unemployment 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 dropped out of the labor force. More than 24 million Americans who want jobs don’t have them, driving the labor force participation down to 63.6 %— just above August’s 31-year low of 63.5%. This is the worst labor market in a recovery ever.

For an even cheerier note, it may get worse. The quarterly Wells Fargo/Gallup small-business survey found that 21% plan to cut jobs over the next six months.

Small businesses account for nearly 80% of all new job creation in America. A small-business slump means no jobs. Small businesses are being threatened with huge new expenses because of ObamaCare. Their transportation costs are going up. Their energy costs are going up. The cost of goods is going up. New regulations are pouring out of Washington, with more uncertainty as to whether or not they are complying with new laws. Obama’s insistence on raising taxes on “the rich” will affect some 990,000 small businesses who file their taxes as individuals.

So why is the labor market not recovering rapidly as it has done in the past with millions of new jobs and rapid economic growth? One word. Obamanomics. His ideology points him in the direction of a second recession. The jobs climate is undoubtedly made worse by the debate over “the fiscal cliff.” Obama’s bad ideas have already had a negative impact on small business. We need four million private sector jobs to get back to the where we were before the “Great Recession.”


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