Each month's jobs report has another distinguishing feature illustrating the precarious employment conditions in America. In June it was the large number of part time jobs created that swamped the few full time jobs created & in July it was the lowest number of jobs created since March - if the July rate of increase would continue it would take over four years just to reemploy the 3.2 million people who have been unemployed for twenty seven weeks or longer. Calculation is based on 150,000 jobs per month needed to keep up with population growth @ the current labor force participation rate.
The July official jobless rate, U-3, increased from 6.1% to 6.2% but more importantly the U-6 rate - the total unemployed, plus all persons marginally attached to the labor force including discouraged workers who have stopped looking for work, plus the people working part time who want full time employment – increased from 12.1% to 12.2%.
The number of government workers increased by 96,000 in July to 20.453 million – the highest level of government workers in 2014. Government consumption is a component of GDP that is a drag on the wealth creating growth of our economy. We know that money taken from the wealth creating taxpayers to fund the employment of government workers @ a new 2014 high will not be spent as efficiently as if the taxpayers had spent or invested the money themselves.
Since 2000 5.2 million private sector jobs have been created. This compares to 42.5 million such jobs between 1980 & 2000. There were 36 quarters of growth of 4% or more on an annual basis between 1980 & 2000 & only three such quarters since 2000. Source Jim Pethokoukis of AEI.
To find out just how bad the economy & job opportunities are Neel Kashkari, the Republican nominee for governor of California, went to Fresno with $40, a backpack, a change of clothes, & a toothbrush with the intent of finding a job to earn enough money to get by. Click here to see how he made out.
I always get a kick out of the "discouraged worker's" category. What exactly does that mean?
ReplyDeleteDo they go home, roll up in the fetal position and wait for the government to take care of them?
No, like I have written many times they move in with family & between all in the household they get a couple of rotten part time jobs, a government welfare check or two, & most importantly spend down the wealth that their parents accumulated over a lifetime.
DeleteCalifornians are taking satisfaction in the knowledge they got what they voted for...lucky them.
ReplyDelete