White House panic alert

A jobs report only Romney could love. Unemployment rises while job creation sputters to stall-out speed

Topics:

White House panic alert Job fair applicants in Los Angeles, Calif., May 31, 2012

Never mind the mixed signals the U.S. economy has been sending the past couple of weeks. On Friday, the Bureau of Labor Statistics delivered a body blow to optimistic hopes. The United States created only 69,000 news jobs in May, a number far below the consensus expectation of economists and providing fairly conclusive proof that a real slowdown is in place. The numbers for April and May were revised down, significantly — in May’s case, from 115,000 to 77,000. In the first quarter of this year, average monthly job growth was over 200,000. The trend line from January to May makes for glum reading: 275,000, 259,000, 143,000, 77,000, 69,000. At this rate, we could be looking at a recession by Election Day. Unemployment ticked up one notch, to 8.2 percent.

As economist Betsey Stevenson tweeted on receipt of the news, “It’s going to be hard to find the silver lining in this report.” Longterm unemployment — people out of work for more than 27 weeks — jumped by 300,000. The number of persons considered “involuntary” part-time workers rose, as did the number of persons “marginally attached” to the work force — people who want a job but who hadn’t actively looked for one in the four weeks before the jobs report. The average number of hours worked per week actually fell.

The only real hopeful sign: the labor participation rate finally picked up a tad, which suggests that at least part of the rise in the unemployment rate is a function of an increased number of Americans actively looking for work, perhaps encouraged by the strong economic growth earlier in the spring.

But will they stay encouraged?

The New York Times’s David Leonhardt nailed the big picture:

This is the jobs report that economists — and the White House — feared. For 3rd straight year, the spring slowdown has arrived.



Politically speaking, it would be foolish to downplay the importance of this labor report. It cements in place perceptions that the U.S. economy is headed backward just as we enter the final five months of the 2012 election campaign. Investors already alarmed by Europe’s continuing train wreck and strong signs of an economic slowdown in China now have even more to worry about, which is likely to further depress already skittish financial markets.

If you’re handicapping the election, the chances of a President Romney getting inaugurated next January just took a big leap up.

Here’s the silver lining: Household survey showed employment growth of +422k.

Andrew Leonard

Andrew Leonard is a staff writer at Salon. On Twitter, @koxinga21.

More Related Stories

Featured Slide Shows

  • Share on Twitter
  • Share on Facebook
  • 1 of 11
  • Close
  • Fullscreen
  • Thumbnails
    Burger King Japan

    2014's fast food atrocities

    Burger King's black cheeseburger: Made with squid ink and bamboo charcoal, arguably a symbol of meat's destructive effect on the planet. Only available in Japan.

    Elite Daily/Twitter

    2014's fast food atrocities

    McDonald's Black Burger: Because the laws of competition say that once Burger King introduces a black cheeseburger, it's only a matter of time before McDonald's follows suit. You still don't have to eat it.

    Domino's

    2014's fast food atrocities

    Domino's Specialty Chicken: It's like regular pizza, except instead of a crust, there's fried chicken. The company's marketing officer calls it "one of the most creative, innovative menu items we have ever had” -- brain power put to good use.

    Arby's/Facebook

    2014's fast food atrocities

    Arby's Meat Mountain: The viral off-menu product containing eight different types of meat that, on second read, was probably engineered by Arby's all along. Horrific, regardless.

    KFC

    2014's fast food atrocities

    KFC'S ZINGER DOUBLE DOWN KING: A sandwich made by adding a burger patty to the infamous chicken-instead-of-buns creation can only be described using all caps. NO BUN ALL MEAT. Only available in South Korea.

    Taco Bell

    2014's fast food atrocities

    Taco Bell's Waffle Taco: It took two years for Taco Bell to develop this waffle folded in the shape of a taco, the stand-out star of its new breakfast menu.

    Michele Parente/Twitter

    2014's fast food atrocities

    Krispy Kreme Triple Cheeseburger: Only attendees at the San Diego County Fair were given the opportunity to taste the official version of this donut-hamburger-heart attack combo. The rest of America has reasonable odds of not dropping dead tomorrow.

    Taco Bell

    2014's fast food atrocities

    Taco Bell's Quesarito: A burrito wrapped in a quesadilla inside an enigma. Quarantined to one store in Oklahoma City.

    Pizzagamechangers.com

    2014's fast food atrocities

    Boston Pizza's Pizza Cake: The people's choice winner of a Canadian pizza chain's contest whose real aim, we'd imagine, is to prove that there's no such thing as "too far." Currently in development.

    7-Eleven

    2014's fast food atrocities

    7-Eleven's Doritos Loaded: "For something decadent and artificial by design," wrote one impassioned reviewer, "it only tasted of the latter."

  • Recent Slide Shows

Comments

0 Comments

Comment Preview

Your name will appear as username ( settings | log out )

You may use these HTML tags and attributes: <a href=""> <b> <em> <strong> <i> <blockquote>