Unemployment
What will the GOP complain about now?
The economy adds 243,000 new jobs and the unemployment rate falls again. Finally, a really encouraging jobs report
(Credit: AP/Salon) Proof, once again, that it’s hard to predict what’s going on in the U.S. labor market: The consensus opinion of analysts had the U.S. economy adding 120,000-150,000 jobs in January. The ADP private sector jobs report, released on Wednesday, counted 170,000 new jobs. But the obsessively watched U.S. government report, released Friday morning, reported a surprising — and encouraging — 243,000 new jobs. The unemployment rate fell another couple of notches, to 8.3 percent. Can you say bull market?
In the context of the last few years, that’s what we call a strong labor report. The job gains were widely distributed. Manufacturing added 50,000 jobs. Healthcare grew by 31000. Leisure and hospitality, 44,000. And so on. Most encouraging of all, the labor force participation rate held even at 63.7 percent and the employment-population ratio rose, clear signs that Americans are no longer simply abandoning hope and giving up any chance of finding a job.
Republican leaders are already complaining that the unemployment rate is still too high and reminding everyone that the economy has been awful for most of Obama’s term in office. That’s true, but the political implications of the new numbers are still huge. If we are to believe Nate Silver, the political number-cruncher now ensconced at the New York Times, President Obama needs jobs growth of 150,000 a month between now and November to have any chance of holding on to his job. Anything better than that obviously improves his odds. The timing could not be better for the White House.
There are still big problems to deal with. The Bureau of Labor Statistics counted 11.8 million unemployed Americans, and 42.9 percent of them are considered “long-term unemployed” — jobless for 27 weeks or more. That’s 5.5 million people whose job prospects get worse every month.
But U.S. economic growth is clearly accelerating. The auto industry had a great January. The manufacturing and retail sales sectors both reported healthy numbers in January. It’s getting more and more reasonable to argue that the labor market is finally gaining real steam. All the pieces are falling into place for a virtuous cycle — more jobs translating into more demand, which equals even more jobs.
Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard.
Whitman’s lesson for Romney
Layoffs at Hewlett-Packard show why business leaders aren't automatically a good fit for the White House
Mitt Romney and Meg Whitman (Credit: AP/Chris Carlson) When Meg Whitman ran for governor of California in 2010, the former eBay CEO told voters that her business background made her the right choice to boost job creation in a state troubled by high unemployment. Sound familiar? It’s the same spiel we hear from Mitt Romney every single day.
As a consolation prize for getting clobbered by Jerry Brown in the gubernatorial election, Whitman landed a plum job of her own — CEO of Hewlett-Packard, a company that, like California, has been going through some tough times. But this week Whitman made clear that as a business leader, her approach to job creation doesn’t quite mesh with her political promises. Multiple media outlets are reporting that HP is planning to cut its workforce by around 30,000 jobs — a number that accounts for 7-8 percent of HP’s total workforce.
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Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard.
David Brooks, “structuralist”
The New York Times moderate says the welfare state is unsustainable, and buys himself a new $4 million home
David Brooks is everything that’s wrong with elite opinion in America. The president reads him and takes him seriously. That is why the opinions of venal faux “reasonable” clowns like Brooks matter. Brooks today sums up the new argument for not actually doing anything to alleviate worldwide unnecessary hardship: The problem is “structural,” not “cyclical”!
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Alex Pareene writes about politics for Salon and is the author of "The Rude Guide to Mitt." Email him at apareene@salon.com and follow him on Twitter @pareene More Alex Pareene.
Bush vs. Obama: Jobs
During George W.'s first term, big government boosted employment. For Obama, it's the opposite
George W. Bush and Barack Obama(Credit: Reuters/AP) There is a number buried in today’s government labor report that deserves closer examination: 35,000. That’s the net number of private sector jobs created during the Obama administration to date. That’s right, it’s a positive number. After the worst economic disaster to befall the United States in 80 years, that’s a number that maybe we should be applauding. Remember: The private sector hemorrhaged more than 2 million jobs in the first three months of 2009 alone. The hole was deep.
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Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard.
Another jobs report downer
The U.S. economy underperforms again in April, creating only 115,000 jobs. You can almost hear Mitt Romney cackle
Job seekers wait in line during a job fair in Portland, Ore., on April 24. (Credit: AP/Rick Bowmer) The U.S. economy is stuck in spring mud. For the second month in a row, the United States labor market underperformed expectations. According to the Bureau of Labor Statistics, the economy created a lackluster 115,000 jobs in April. The unemployment rate fell one notch, to 8.1 percent, but for a distressing reason: The overall size of the U.S. labor force dropped by 342,000, a sign that hundreds of thousands of Americans simply gave up looking for work in April. The labor force participation rate fell to 63.6 percent, the lowest mark since 1981.
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Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21. More Andrew Leonard.
Healthcare’s foreign invasion
Obama risked a trade war with China about manufacturing -- so why isn't he outraged about medical jobs?
(Credit: gualtiero boffi via Shutterstock/Salon) Approximately 15 percent of all healthcare workers and 25 percent of all physicians in the United States were born and educated elsewhere. This means that 1.5 million healthcare jobs are “insourced,” occupied by foreign-born, foreign-trained workers brought into the United States on special visas earmarked for healthcare jobs. This number is 50 percent greater than the total number of jobs in the U.S. auto-manufacturing industry. It’s amazing to consider that in 2008 and 2009, the auto industry, which makes up just 3.6 percent of the U.S. economy, received a $97 billion bailout. If we estimate that each of these 1.5 million insourced healthcare jobs has an average wage of $60,000, that’s $90 billion a year in wages going to people brought into the United States to work rather than training Americans to do the same jobs.
Continue Reading CloseDr. Kate Tulenko is a physician with degrees from Harvard University, Cambridge University and the Johns Hopkins School of Medicine. The former coordinator of the World Bank's Africa Health Workforce Program, she currently serves as director of clinical services for a global health nonprofit. More Kate Tulenko.
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