Yesterdays Jobs Report was better than expected; the markets went wild and had one of their best days of the year. The ‘trend’ in job creation went up not down and thats what cause all of the excitement and relief. However, the number of jobs gained in July, 163,000, was abysmal. A few facts many people dont know. It takes about 150,000 new jobs created per month just to keep up with population growth; in other words to break even. The figure we saw for July was a ‘break even’ number. At this rate of job creation it would take 10 years to get back to full employment. These jobs numbers are completely unacceptable. In order to put more Americans back to work and in the job market we need growth of around 400,000 to 500,00 per month for probably a few years.
In a closer review of the Government’s ‘Employment Situation Summary’ some very disturbing results can be found. First of all there has been NO drop in the number of unemployed people for all of 2012, thats staggering. The same number of people that were unemployed Jan 1 are still unemployed. Worse yet, the number of long term unemployed has not dropped either. As I have said this will have devastating consequences on the future of our Country. Both with the young people starting out and people mid career who got laid off and cant find work. The psychological impact cant be down played; just how many jobs can you apply for, how many resumes can you send out, how much networking can you do before you decide to give up. The reason the official unemployment rate is only 8.3% is because many many people have given up and are no longer looking for work; and they are not counted in the official unemployment rate. All of this is going on while the Federal and State Governments are pulling back on unemployment insurance. People with too much time on their hands, feeling beaten down by the system, having little hope for their futures and running out or out of money is a disastrous combination that could lead to more crime and other violent acts. While we have fewer police around because of cutbacks.
There are some 25 million Americans who are unemployed or underemployed. And these numbers have not changed; they are not being lowered. This is nothing shorts of a catastrophic crisis. And yet you never hear the news media, the presidential candidates talking about the unemployed. You hear lots of talk about ‘jobs’ but few if any details on how they would create jobs and more importantly how they would get the unemployed back to work. The Republicans are employing a ‘scorched earth’ policy of blocking every effort Obama makes to create new jobs. The GOP and Dems spend the majority of their time posturing and voting on bills they know will never get passed.
I call on President Obama to show some leadership and fix this situation, he is the POTUS, the buck stops with him. Instead of campaigning he should be in Washington spewing out one idea after another. But, just like the rest of our government, he is more interested in keeping his job than helping the suffering Americans. Its a disgraceful situation.