Do you really need to know ANY MORE than this??
From the Center for Freedom and Prosperity
The economy is suffering from the weakest recovery since the end of World War II, in large part because President Obama has increased the burden of government. This CF&P Foundation mini-documentary also contrasts the economy’s anemic performance under Obamanomics with the strong expansion under Reaganomics.
- Posted on October 5, 2012 at 9:36am by Meredith Jessup
From The Blaze
The reported unemployment rate measures the ratio of unemployed workers seeking work relative to the size of the workforce. So what happens when the size of the workforce shrinks to historic lows? You get a small dip in the unemployment rate.
As this chart (via Zero Hedge) demonstrates, America’s workforce continues shrink as unemployed workers give up on finding jobs:
Does today’s dip in the unemployment rate mean our economy is on the right track? That’s the argument President Obama and his campaign are sure to make. But the labor force participation rate – which has fallen precipitously from 66.1 percent in 2008 to 63.5 percent today – tells a different story.
The median family income in America has dropped 8% since Obama took office.
The nation’s real unemployment rate remains near 11%.
The percentage of college graduates who can’t find work now exceeds 50%.
The U.S. birthrate has even declined as young Americans struggle to get established.
The number of workers settling for part-time work rose 7.5% last month to 8.6 million.
Clearly, the unemployment rate is not telling the whole story.
To add insult to injury, the United States added 114,000 jobs in September. Cause for celebration? Hardly: With just 1/10th of the population of the United States, Canada added 52,000 jobs last month. If the United States economy created jobs at a rate on par with Canada’s economy, we would’ve created about 480,000 jobs last month, not 114,000.
If this is what moving “forward” looks like in America nowadays, we’re in serious trouble.
During the robust Reagan jobs recovery in the 1980s, liberals regularly dismissed good news by attributing it to the creation of “McJobs.” So it’s interesting to see liberals celebrating the September jobs report, in which the headline unemployment figure fell to 7.8 percent, largely because of an increase in Americans settling for low paying part-time jobs.
Once a month, the Bureau of Labor Statistics reports two main sets of employment numbers. Under one measure, based on a survey of employers, the economy added 114,000 jobs in September. Under another measure, based on a smaller survey of households, the economy added 873,000. But a more detailed look at these numbers shows that 572,000 — or about 67 percent — of the reported job gains that contributed to the reduction in the unemployment rate came from workers who had to settle for part time work. BLS explains that, “The number of persons employed part time for economic reasons (sometimes referred to as involuntary part-time workers) rose from 8.0 million in August to 8.6 million in September. These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job.” This is why a broader measure of unemployment, which takes into account those who were forced to accept inferior jobs, remained flat at 14.7 percent.
This report is part of a broader trend that we’ve seen over the past few years, in which job gains have been concentrated in lower-wage positions. And this isn’t just spin from the Romney campaign. Over the summer, the liberal National Employment Law Project released a report that was highlighted in the Atlantic, which focused on this trend. The report found that:
– Lower-wage occupations were 21 percent of recession losses, but 58 percent of recovery growth.
– Mid-wage occupations were 60 percent of recession losses, but only 22 percent of recovery growth.
This is illustrated by the NELP chart above. Though Obama has touted modest job gains during the recovery as evidence things are getting better, looking merely at the headline jobs and unemployment number obscures the fact that the middle class has still struggled to find quality jobs, while more Americans are settling for lower-paying work.
The truth about unemployment is far worse than any Democrats will tell you. They cheer when the unemployment rate goes down but neglect to tell you it’s going down because more people are leaving the workforce than jobs created. The charts below show the long unemployment rates and then the historical trends regarding recessions. The gray bars represent recessions. You’ll notice historically there are job losses then job gains – until Obama. These charts should scare the living hell out of you. You can read the full story here.