Jobs unemployment part time workers recap September 7, 2013, Media reports labor force participation rate, Obama falling from grace?, More people quit work searches
“Over the last six months, of the net job creation, 97 percent of that is part-time work,”…Keith Hall, former BLS chief
“11.4%: What the U.S. unemployment rate would be if labor force participation were back to January 2008 levels.” …James Pethokoukis, American Enterprise Institute, June 2013
“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″
If you have been following Citizen Wells you are aware of the real and scary employment situation in this country.
Record droves of people dropping out of the labor force and part time jobs.
Much to my amazement, early yesterday morning I read the following.
From Market Watch September 6, 2013.
“Unemployment rate falls to 7.3% as more people quit work searches”
“The U.S. added a modest 169,000 new jobs in August, the number of positions created in July was slashed and more workers dropped out of a labor force in a sign that hiring conditions worsened toward the end of the summer.
The unemployment rate, meanwhile, ticked down to 7.3% from 7.4%, but that was because fewer people were searching for work, according to new figures released by the Labor Department Friday.”
“The increase in jobs last month only fell a touch short of Wall Street’s forecast calling for a 173,000 increase. What gave the report a darker tone was the downward revisions in the prior two months and a sharp decline in the number of people looking for a job.
Employment gains for July and June were lowered by a combined 74,000, with the biggest revision taking place in July, the Labor Department said. The number of new jobs created in July was slashed to 104,000 from 162,000 — the smallest gain since June 2012.
And June’s job gains were trimmed to 172,000 from 188,000.
What’s more, the labor force participation rate fell to 63.2%, the lowest level since the summer of 1978. The participation rate measures how many healthy, working-age people 16 and older are looking for jobs.”
Rush Limbaugh noticed and reported this change in reporting tone from the media.
Rush Limbaugh transcript September 6, 2013.
“RUSH: You know, folks, even the Drive-By Media is starting to turn on Obama on the economy. The economic news, the unemployment news, it went down 7.3 from seven-point whatever it was, but the media knows that that’s not because jobs are being created.
A couple of them — I’ve got it here in the Stack — are telling the truth about it.
Reuters: “US Job Growth Misses Expectations, Offers Cautionary Note for Fed.” Now, what they’re doing, the Federal Reserve, if you’ve noticed, the stock market is — let me check. Even as we speak here, let me check the stock market. Well, it’s up right now, but not much. It was down a lot yesterday, trickling down, because the Federal Reserve is talking about no more quantitative easing, which is no more stimulus. And the people in the markets know that the only reason the stock market’s been going through the roof is because the Fed has been buying stock, not people. Short version of the truth. That’s the simplified version here. And if the Fed starts talking about no more of that, panic sets in.”
“If the same number of jobs that existed in 2009 existed today, the unemployment rate would be 10.8%. It’s not 10.8%; it’s 7.3 because those jobs are gone. They don’t exist. They’re not even available to be filled. It’s called the labor force participation rate. You add that people, when they stop looking, they are no longer counted as unemployed. Go figure. They have looked and looked and looked. They’ve been on unemployment 99 weeks or more. They finally have given up. They’re no longer counted.
The unemployment rate that’s reported only includes people actively trying to find a job. Those who have given up, which numbers in the millions now, don’t get counted, so the rate goes down. And so the media is afraid that the people at the Fed will not know what I just told you and that they’ll see the unemployment rate going down and believe they have fixed it and stop priming the pump, stop spending, printing money. Obama and the Democrats and their minions are scared to death of this. And the Democrats know — we’re talking a serious amount of money — the Democrats know that if the Fed stops printing, it’s actual digital transfers, folks, they’re not actually printing hard currency for all of this. They’re just digitizing, just adding money to a computer spreadsheet, essentially.”
Do not be fooled by Obama protectors in the media. The part time jobs component is also affecting households and the economy.
From Guggenheim September 5, 2013.
“The Growth Mirage”
“Despite disappointing economic data, there continues to be widespread expectations of a period of stronger economic growth just ahead. This growth mirage draws thirsty investors and increases the likelihood that interest rates will continue rising over the near-term.”
“Part-Time Jobs Driving Employment Growth
Growth in part-time jobs has been the main contributor in overall employment increases since the start of 2013. Over the past seven months, the average monthly growth in full-time jobs has been 32,000, while the average number of new part-time jobs was 104,000. After falling from the recession peak of 20 percent, the share of total jobs which are part-time has recently rebounded to 19.6 percent. The increase in part-time jobs may be partially attributable to the upcoming change in healthcare laws, requiring employers to provide health insurance to full-time employees but not for part-time workers. If the trend continues, the increasing share of part-time workers may add downward pressure to aggregate labor earnings and reduce consumption growth.”
From the US Labor Dept. BLS.
From January of 2009 when Obama took control of the White House to August 2013.
________________________Jan 2009 Aug 2013
Labor Force Participation Rate 65.7 63.2
Could only find part time work 1,676,000 2,719,000
The labor force participation rate plummeted 2.5 percent under Obama.
1,043,000 more people can only find part time work under Obama.