Another Tragic Jobs Report

The Labor Department has published its jobs report for May:

  • Employers added a pathetic 69,000 jobs.  It takes at least 125,000 new jobs every month to keep up with the growth in the working age population, and employers still have not replaced the five million jobs that were lost in 2008 and 2009.
  • The reports for March and April were revised downward, reducing the number of jobs created during those two months by 60,000.
  • If the 2012 average monthly growth rate continues it will take thirty more months to replace the jobs that were lost in 2008 and 2009.  But even that milestone will still leave America short 11 million jobs that should have been added to keep up with population growth.
  • The unemployment rate ticked up from 8.1% to 8.2%.  

The  chart compares the current recession/recovery cycle with the previous three. 

Obviously, the current cycle dramatically under performs.  The chart doesn’t show them, but from 1947 to 1981 there were four recession/recovery cycles with job losses.  In each case all lost jobs were replaced within two years.  We’re in the fifth year of this cycle and still 5 million jobs short of the previous peak, January 2008.

Reaction from the White House?  President Obama was on his way out to do six fundraisers in one day.

If the President and his supporters were willing to learn from history they would reverse course and adopt the strategies of the Reagan Administration (the red line in the chart.)  Reagan’s successful strategies were tax code simplification coupled with reductions in income tax bracket rates and deregulation. 

3 Comments so far

  1. […] Another Tragic Jobs Report […]

  2. SenateStaff on June 3rd, 2012

    Conservatives and Obama-haters seem to have memory deficits. They don’t remember just 40 months ago when Obama inherited an economic calamity. 700,000 workers were losing their jobs every month. That was how the Bush Administration with its tax cuts and deregulation ended. Remember?

    Obama stepped into this firestorm and was a visionary leader. He stopped the bleeding. It took about a year but there was a huge, open wound pumping blood.

    Now, as Obama says, all you conservatives have is a lot of ankle biting and barking and plans to go right back to Bush-ism!

    Yes, the progress toward a better America slowed some but it’s still progress. It’s better than going back to the Bush mess! If you really wanted to see things get better you’d be pushing Obama’s common sense ideas to get the economy moving. But you don’t want things to get better because you can win only by scaring people into thinking things are worse than ever.

  3. @SalOfSouthCentral on June 3rd, 2012

    Hey SenateStaff –

    Blame Bush? Is that all you got? How many years do you think Obama should get a pass for his failures? Yeah, he inherited a mess. But he made the mess worse! It;s like inheriting a house that needs new paint and a new roof and instead of fixing it up you throw dog shit in all the rooms and then you blame your parents who left it to you for the stink!