Friday, May 6, 2011

Obamas Fuzzy Math, Increase Jobs Cause Higher Unemployment

Surprising? Unexpected? These are the words economist are using to describe the spike in unemployment with a modest increase in payroll. The fuzzy math used by the Obama Administration won't fool the American people. It is obvious that calculating unemployment, the Administration forgot to add those who stop looking for work and those who decided to work part time (underemployment). Neglecting these factors will soften the unemployment figures. Besides, with McDonald adding 62,000 jobs, it does help make the job figures look appeasing. FYI, there were over a million applicants fighting for those 62,000 jobs McDonald was advertising.

As suggested, wages didn't improve and the average hours of work didn't increase. It means we need to see over 300,000 jobs created to bring down the unemployment rate. It proves that Obama's policies aren't working. It is time for him to go!

(National Journal) U.S. employment growth accelerated last month as the economy added 244,000 jobs, but the unemployment rate rose to 9 percent, the Labor Department reported on Friday.

The report easily bested analysts' expectations for a decidedly mediocre jobs report and marked the fastest rate of employment growth since last year when census hiring inflated numbers. Private-sector growth clocked in at 268,000, the highest level since 2006. The public sector continued to lose ground, shedding 24,000 jobs in April.

Hiring in the service sector drove the gains, with sizable jumps in retail trade (up 57,000), professional and business services (up 51,000), leisure and hospitality (up 46,000), and health care (up 37,000). Goods-producing sectors showed less of a bump, and construction job levels didn't budge, a reflection of how depressed the housing market continues to be.

The number of long-term unemployed--defined as those individuals being out of work for more than 26 weeks--fell 283,000 to 5.8 million, and their share of unemployment fell to 43.4 percent.

April's unemployment-rate rise also followed a steep, full percentage-rate drop over the prior four months, which had surprised analysts as being stronger than expected.

Although Friday's numbers certainly mark an improvement over previous reports, it will take another two and a half years before the economy reaches prerecession employment levels. How long after that it will need to add enough jobs to compensate for population growth will depend on how many people rejoin the labor force. Without question, it would be many more months.

There are some other reasons for caution, says Heather Boushey, a senior economist at the left-leaning Center for American Progress. Average hours of work didn't increase, and wages, while up nominally, didn't really rise once adjusted for inflation. "This does give me pause," she said, adding that "we really need to be seeing job growth above 300,000 to be getting the unemployment rate down."