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The Truth about the Recent Jobs Report July 14, 2014 10:00 AM | Tagged as participation rate, unemployment, Zuckerman
WSJ July 14, 2014 page A15: “The Full-Time Scandal of Part-Time America” by Mortimer Zuckerman
Zuckerman is the Chairman of US News & World Report. He debunks the current euphoria from President Obama about the recent increase in jobs in America. The most recent report says the increase is 288,000 jobs. While true, here is the math:
Full-Time Jobs Destruction – (523,000)
Part-Time Jobs Creation -- 800,000
Net Job Creation -- 288,000 (difference is rounding)
About 28 million Americans now hold only part-time jobs. Only about 48% of Americans hold full-time jobs. The part time jobs have made the unemployment number drop to 6.9%. That figure looks much better than the mess five years ago as the recessions began. However, 2.4 million Americans have become discouraged and dropped out of the job market. That is called the labor participation rate which is the lowest since the bleak years of Jimmy Carter.
The two main reasons for such a lousy jobs situation in America:
1. The lousy economic growth under Obama. Last quarter the economy contracted 2.9%! One more quarter of contraction and the economists will declare us in another recession. Lousy growth, lousy employment figures.
2. ObamaCare has forced companies to start hiring part-time workers, under 30 hours per week.
Worse, the jobs that are created are low wage jobs. High paying industries have lost 1 million positions since 2007. It isn’t just the young. Many middle-aged workers have low paying, insecure, low-benefit jobs.
What to do? Let’s dump the low growth policies and start re-opening America for business. While the method to do that differs across the political aisle, both sides agree the lack of growth is our most important issue to fix.
The Biz Bucks Guy suggests lowering taxes and lowering federal spending. This always works. We should also fix the regulatory mess and replace ObamaCare with common sense fixes to our healthcare system. Then, we could embrace a smart energy policy, dumping the Green Movement's insantity twarting fracking and the XL pipeline.
It starts in November 2014.
[Although opinion is included, The Biz Bucks Blog is primarily written to former students of Biz Bucks training courses to encourage their daily reading of the three opinion pages of the WSJ. This refreshes principles of Biz Bucks courses and improves business acumen on topics not discussed in Biz Bucks training.]
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