America needs more jobs despite today’s jobs report
According to the Heritage Foundation, the Department of Labor November jobs report showed that 120,000 net new jobs were created last month and the unemployment rate dropped to 8.6 percent?
However, this result was driven in part by the 315,000 people who have given up looking for work and are no longer counted as unemployed. Also, most of the new jobs were in retail and are probably temporary jobs associated with seasonal Christmas hiring.
The so-called underemployment rate — which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking — decreased to 15.6 percent from 16.2 percent.
Furthermore, the jobless rate has exceeded 8 percent since February 2009, the longest stretch of such levels of unemployment since monthly records began in 1948.
There are over 13 million Americans out of work and 402,000 workers who filed initial claims for unemployment last week. In order to lower the unemployment rate further, the market needs to create more than 250,000 jobs per month, or rely on the Obama administration to convince more workers to stop looking for employment.
Unemployment remains high because job creation has fallen. From the recession’s onset to the first quarter of 2009, private job creation fell by 24 percent to 5.8 million jobs. That was the lowest quarterly job creation on record.
Fewer existing businesses are expanding, while fewer entrepreneurs are starting new businesses. In the first quarter of 2011, the number of workers hired in new business establishments fell to just 660,000, 27 percent fewer than when the recession began. This is the lowest number of workers hired at new businesses that the [Bureau of Labor Statistics] has ever recorded–lower even than the worst points of the recession.
Unfortunately, we’re living in a recession America, where jobs are not being created fast enough. And the root of that problem is a White House that believes it creates jobs, when the best the government can do is stay out of the way.