We Can’t Take Much More of this Recovery
Putting a damper on the Obama Administration’s claim that we have “turned the corner” and are well along on our path to recovery are the job numbers for August. Last month, 96,000 jobs were created. The problem is that 368,000 people gave up hope of finding a job and stopped looking for one. For governmental statistical purposes, these 368,000 ceased to exist, which is why with four people dropping out of the labor market for every one that entered, unemployment went down to 8.1%. Is this anyone’s idea of an economic recovery?Here’s what else we learned from the data:
- The sector with the largest increase in jobs (30%) was the service industry, specifically “food services and drinking places.”
- Estimates of jobs created in June and July were revised downward by 41,000.
- The working-age population increased by 212,000, 116,000 more than jobs created.
- The labor participation rate is the lowest since 1981 and the labor participation rate for men is the lowest on record.