the lightworker

4Jun/102

Is Obama “jobbing” us about the jobs picture?

Teh Lightworker cometh!

I remember when the O!ministration promised to "pivot" and focus laser-like on jobs and the economy. But these days, I'm starting to wish that the lightworker could at least focus laser like on reality! In suburban Maryland, just outside DC, Obama chose to use a local small business for his latest public palaverings; hailing the BLS labor report, a statistical decrease in the unemployment rate, and-of course- remind us that "happy days are here again indeed".

President Barack Obama says the addition of 431,000 new jobs in May shows "the economy is getting stronger by the day."
The president says that even though the census jobs are only temporary, private sector hiring is growing, too.

Now I don't want to spoil the Presidents fun or derail his latest attempt at talking up the economy; or tell us how the stimulus saved us-again. Nor do I take any satisfaction in the BLS data falling far short of the mark that many had etimated it at, between 600 to 700k. I truly wish employment were growing, especially in the private sector, but that's just not the case.

As Jonah Goldberg points out at The Corner, and links to a more complete reference, not only did the number of private sector jobs increase pitifully compared to a month ago, but that overall participation in the workforce declined by a couple of ticks, to 65%, and that the decrease in the unemployment numbers was due to people leaving the labor force !

In fact, Tyler Durden at Zerohedge arrives at substantially the same figure, with respect to unemployment, of people being subtracted from the unemployment number by sifting through the BLS data and doing some simple arithmatic.

What's problematic for the White house is that prominent avowed Keynesian economists are starting to say that the economy is going south as well, such as former CLinton Labor Secretary Robert Reich; a gentleman I have had the pleasure of meeting a few times during my days in DC, and who generally speaks his mind whether part of the approved narrative or not. And I'm certain, that his latest observations are definitely not! part of the script:

We’re falling into a double-dip recession.

The Labor Department reports this morning that the private sector added a measly 41,000 net new jobs in May. (The vast bulk of new jobs in May were temporary government Census workers.) But at least 100,000 new jobs are needed every month just to keep up with population growth.

In other words, the labor market continues to deteriorate.

The average length of unemployment continues to rise – now up to 34.4 weeks (up from 33 weeks in April). That’s another record.

More Americans are too discouraged to look for a job than last year at this time (1.1 million in May, an increase of 291,000 from a year earlier.)

Of the small number of jobs created by the private sector in May, many came from temporary help services.

Admittedly, he seems to be under the impression that the answer is...wait for it...More Stimulus! But while I disagree with that particular solution, as it makes it harder to reduce federal spending whith all of these stimulo-bucks being tossed about in the hopes that something will stick, I find it interesting that while Obama insists on the rose-colored, unicorn riding, interpretation, Reich is bold enough to speak the inconvenient truths. Would that mean he's speaking TROOOOOOOOOOOF! to POW-AH!1!1!!eleventy?

And maybe as important is the question, when did Bob Reich become such a, well, you know...RAAAAAAAAACIST!

[Update] Jeff at Protein Wisdom has a post on the subject with a link to a Bloomberg news piece that scrutinizes the numbers also.

Image courtesy of Jabberinwookie