Seven? more years to recoup lost jobs
Seven if we’re lucky:
The U.S. jobless rate rose to 9.6% in August, but the government’s broader measure of unemployment rose even more to 16.7%, the highest rate since April.
The comprehensive gauge of labor underutilization, known as the “U-6″ for its data classification by the Labor Department, accounts for people who have stopped looking for work or who can’t find full-time jobs.
Peter Whener looks at what the numbers mean,
During our supposed “Recovery Summer,” we have lost 283,000 jobs (54,000 in June, 171,000 in July, and 54,000 in August). And for August, the employment-population ratio — the percentage of Americans with jobs — was 58.5 percent. We haven’t seen figures this low in nearly three decades. As Henry Olson of the American Enterprise Institute points out, “Since the start of this summer, nearly 400,000 Americans have entered the labor force, but only 130,000 have found jobs. … America’s adult population has risen by 2 million people since [August 2009], but the number of adults with jobs has dropped by 180,000. The unemployment rate declined slightly despite these numbers, from 9.7 percent to 9.6 percent, because over 2.3 million people have left the labor force entirely, so discouraged they are no longer even looking for work. ”Keep in mind that all this is occurring during a period when job growth should be considerably higher, at least based on past post-recession recoveries. Former chair of the Council of Economic Advisers Michael Boskin points out that “compared to the 6.2% first-year Ford recovery and 7.7% Reagan recovery, the Obama recovery at 3% is less than half speed.” Bear in mind, too, that today’s jobs report comes a week after the GDP for the second quarter was revised downward, from 2.4 percent to 1.6 percent. Economists generally agree that the economy needs to grow 2.5 percent to keep unemployment from going up, and a good deal better than that to begin to bring it substantially down.
What all this means, I think, is that we’re not in a recovery at all, at least not in any meaningful sense.