Economy

We’re still waiting Mr. President

As the new jobs report was released this morning, everyone across the country held their breath to see if the new unemployment numbers would show a rise or fall.  The numbers are out and for the month of September unemployment fell to 7.8 percent, the lowest since President Obama took office.  This should be a good thing for the economy and a sign that things may be actually turning around, right?  Well let’s look a little closer at the number and see what they tell us.  According to the Bureau of Labor Statistics, payrolls increased by 114,000 with most of those being in the health care and transportation and warehousing industries.  This is good news, but manufacturing is down by 16,000 and has been unchanged overall since April.  The manufacturing sector is seen as an indicator for overall economic strength, and any decrease in it is not a good sign.  Next lets look at the kind of jobs that were added.  Many of the new jobs added last month were part time.  The BLS defines these part-time workers as, “individuals whose hours had been cut back or were unable to find a full-time job.”

This is not the kind of job growth that we want to see.  With manufacturing down and part-time work making up a majority of the added workforce, the new jobs report is still anything but stellar.  I am sure that the Administration will waste little time in touting these new numbers as an indicator that the economy is getting back on track and their policies are finally producing.  This message will connect with the average voter because all they will see is the 7.8 percent and it couldn’t have come at better time for President Obama after the lashing he took in Wednesday’s presidential debate.

It is only when you take a closer look into the numbers that the Administrations case begins to fall apart.  Lets also not forget that President Obama promised an unemployment rate below 6 percent by 2012 after the stimulus.  Well Mr. President, we are still waiting for that promise to be fulfilled.

 

Relevant Material:

http://www.bls.gov/news.release/empsit.nr0.htm

http://www.bloomberg.com/news/2012-10-05/u-s-jobless-rate-unexpectedly-falls-to-7-8-114-000-jobs-added.html

http://www.cbsnews.com/8301-500395_162-57526635/unemployment-rate-falls-to-7.8-percent-44-month-low/

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