Six Years After Recession The Jobs Crisis Drags On

In the Obama Era, for the first time ever, a falling unemployment rate is an indicator of economic deterioration.

America is still in the depths of an unprecedented employment crisis.  Yet our political leaders glibly claim the economy has recovered as they try desperately to divert our attention to distractions like confederate flags and global warming.July-arc-of-participation

Late last week, as we all turned our attention to the holiday weekend, the Labor Department issued it’s monthly jobs report.  The establishment media robotically chanted the White House scripted “good news” analysis, that 233,000 jobs were created in June and the unemployment rate edged down from 5.5% to 5.3%.  President Obama’s policies of mega-borrowing, mega-spending, mega-regulation and government run health care were “working,” they claimed.

Other details not so widely reported included:

  • April and May job creation numbers were revised downward by a total of 60,000, lowering the net gain for June to 163,000.
  • The unemployment rate fell only because 432,000 jobless people were reclassified – moved from “unemployed” to “not in the labor force” – in one horrendous month!  If those jobless men and women who counted as unemployed in May were still counted as unemployed in June, the unemployment rate would have been unchanged at 5.5%.
  • Because 432,000 jobless people were reclassified from unemployed to not in the labor force, the labor force participation rate dropped to a 37 year low of 62.6% shown in the chart above.
  • If the labor force participation rate were the same today as it was in June 2009 when the recession ended the June unemployment rate would have been 9.8%
  • If the labor force participation rate were the same as it was in 2008, just before the recession started the June unemployment rate would be 10.4%.

The labor force participation rate (shown in the chart above) is the percentage of the working age population that is “in the labor force” either by holding a job or qualifying for the label of “unemployed” by actively seeking a job every week.  As the chart above shows the participation rate has fallen precipitously since the end of the recession even as the Obama Administration has boasted of a steadily improving job market.

This decline in labor force participation is unprecedented.  Nothing like this has ever happened before in the sixty eight years since the government began reporting these monthly statistics.

Why is this happening? The short answer is big government:

  • Exploding regulations,
  • the highest taxes on business in the developed world, and,
  • the Obamacare mandates that impose new costs on employers, punishing them financially for hiring more people.

The quadrennial Presidential election campaign is a season when people who usually ignore politics pay at least some attention.  It is imperative that our fellow voting citizens understand this jobs crisis and it’s causes.  Republicans must nominate a candidate who is NOT comfortable with the big government status quo, who is driven to scale back government intervention in the economy, and who can explain, in soaring Churchillian speeches why America is in decline and what it will take to turn our situation around.

 

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