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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.

Excerpts:

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.

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9 Comments

  1. mike Serak

    “Fact-based discussions of local, state and national issues “………………”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”….

    Ted while I respect your right to have an opinion, that is exactly what this comment is – an opinion, not a fact supported by citing any credible sources. I understand both the conservative and liberal perspectives and am always willing to hear what each has to say. However if you really believe the root cause of a lack of jobs in this country is in the White House then I will share my opinion with you — you are wrong.

    • Ted Biondo

      Welcome to the blog mike – you are entitled to your opinion also. Root cause of the loss of jobs is overregulation, some of highest corporate taxes in the world, too many unelected officials deciding options, unencumbered borrowing with no hope of paying it back, (Bush did it too) with the blessing of the White House and its czars! Not all but much can be traced to our European Socialist president’s door!

  2. All Obama needs to do is have a few million more Americans give up looking for work, and his unemployment numbers will look great.

    One thing that hasn’t been brought up, is that some other countries are looking to replace the dollar as the world’s benchmark currency, due to our massive (and growing) debt, and “quantitative easing” devaluing the dollar. If that happens, we will experience an economic downturn that will make 2008 look like the “good old days”, due to massive inflation, and the failure of other countries to buy our Treasury bills.

    • Ted Biondo

      Yes SNuss, if Obama can just get more hundreds of thousands to quit looking for work in the next half year, then the unemployment rate will approach 8%, which is what Obama promised it would be with the $800B stimulus plan just in time for the election!

  3. Adam Faber

    “Not all but much can be traced to our European Socialist president’s door!”

    Ted, President Obama was born in the U.S. state of Hawaii and spent part of his childhood in Indonesia. What facts can you cite to back up your assertion he is a European socialist?

  4. Adam dont you remember when Obama told Joe (The Plumber) that ” I think when you spread the wealth around, it’s good for everybody”

    He said it and it is a FACT.

  5. Adam Faber

    Sam, again, read what I actually wrote. I asked Ted how he could back up the fact that President Obama is European and socialist. Note how I discussed where he was born and grew up. In no way does Joe the Plumber’s conversation prove that Obama is European.

  6. Jake Wallace

    Ted, I’m new here so I’m still getting to know the Register Star and its contributors. But this post has so many factual inaccuracies that I simply cannot let this one go without comment.

    First of all, your assertion that “most of the new jobs were in retail and are probably temporary jobs associated with seasonal Christmas hiring” is technically correct, but misleading. The published BLS unemployment statistics are “seasonally-adjusted”, meaning they adjust the data to compensate for the wide swings in employment due to seasonally-pertinent events like, for example, retail hiring during the Christmas season. It would be absurd to compare November ice cream sales with July’s, and equally inaccurate to compare winter hiring in retail with summer hiring in snowplowing, hence the need to adjust for seasonality.

    Second, BLS employment statistics, including U-6 (I presume that’s the figure you’re referring to by the term “underemployment” but without clarification I cannot be certain), does not include “people who want work but have given up looking”. That’s completely, 180 degrees false. BLS employment statistics only include those members of society currently in “the workforce”, which is defined as able-bodied people actively looking for work. I add the “able-bodied” caveat because those members of society receiving Social Security Disability are by definition not able-bodied and thus not counted in the over workforce figure (estimated by BLS to grow to 162.3 million people in 2012).

    Finally, the workforce is not increasing by 250,000 people every month. It’s not 1975 anymore – we don’t have a wave of baby boomers in general (and women, specifically) entering the workforce. BLS estimates are currently at about +150,000 per month, and their estimates for the coming decade range 135,000-145,000 per month. This may even be too high, since there is increasing evidence that the ongoing economic crisis in the United States has significantly impacted immigration patterns. This is an extremely important metric to get as precisely correct as possible because it directly affects trendline GDP growth, laborforce productivity, and full employment statistics.

    You are correct that employment growth is terrible. You are correct that this is worst stretch of unemployment since 1948. And, while politically-charged, you are even correct that the only two ways to lower the unemployment rate is job growth or workforce drop-outs. But just because you make it to your destination doesn’t mean you took the right way to get there. Your readers – convervative, moderate and liberal – deserve accuracy in reporting. What’s written above, left unchecked, does a disservice to Register Star subscribers and serves only to misinform its readership at a critical time of governmental accountability.

  7. Carol Foster

    I”ve enjoyed all your informative comments, Jake, but don’t expect Ted to agree he should be accurate. Remember, he was honest enough to tell us how much he dislikes this President and can’t help himself from saying anything and everything bad about him.
    He doesn’t answer questions that don’t fit his personal concepts of the President.
    You’ve asked he use the stats properly no matter which side of the political question they fall on correctly. Lots of luck with that one.

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