There’s bad. And then there’s Obama jobs report bad. Yes, when it comes to meeting economists expectations for growth, the Obama Administration continually falls flat on its face. Just when you think the American economy should have turned the corner and begin to accelerate the monthly jobs report is there to remind you – oh wait, we have a president who has no idea how to fix the economy.
So just how bad was the report? Susanna Kim reports for ABC News:
The unemployment rate fell to 7.6 percent in March but just 88,000 jobs were added, raising fears that the economy is beginning to cool after several strong months.
Ahead of Friday’s jobs report, economists braced themselves for grim numbers. On Thursday, the Labor Department reported that the number of jobless Americans filing unemployment claims increased for the third consecutive time last week.
“This was an ugly report as the expected number was about 190,000,” said Joe “JJ” Kinahan, chief derivatives strategist with TD Ameritrade. “The major area of concern is the loss of jobs in the Retail sector. When taken with the recent disappointment in ISM and housing numbers this may cause a reassessment of what we feel currently about the economy.”
There are two important numbers there – the economy was expected to create 190,000 jobs, but it created 88,000 – the fewest jobs created in nine months. That’s not just falling short of expectations, it didn’t even come halfway toward meeting them.
The falling job numbers aren’t the only disturbing trend from this month’s report. The unemployment rate ticked down, but it was for troubling reasons. A Labor Department survey found that the number of people either working or looking for work fell by nearly 500,000 – the sharpest drop since 2010. That partially contributed to a precipitous decline in the labor force participation rate to 63.3 percent, the lowest that indicator has been since 1979.
We’re making history here folks, and not in a good way.
Of course, liberals quickly jumped into action, trying to divert blame from their failed president to Congressional Republicans. “This is a punch to the gut. This is not a good number,” Austan Goolsbee, the former chairman of Obama’s Council of Economic Advisers, said. “And I think now you’re going to interestingly start seeing a lot of discussion about maybe the sequester’s a bigger deal than people thought it was.”
Nice try Austan, but no dice. As the Washington Post reports:
March was the month that the policy of sequestration, across-the-board government spending cuts went into effect. But the patterns of what sectors added and lost jobs doesn’t match what you would expect if this was the major driver of the weakness. The professional and business services sector, which includes many contractors, actually added 51,000 jobs, consistent with its recent results. The federal government excluding the U.S. Postal Service shed 2,200 jobs, which amounts to a rounding error across the whole of the American labor market.
If nothing else you’d think this latest debacle of a jobs report would at least give the Obama Administration some incentive to shake things up a bit, to deviate from their tired ‘big-government-is-the-only-solution’ scheme. You’d be wrong.
“I think if you look at today’s report and other indicators that are coming in, the economy is continuing to heal,” White House chief economist Alan Krueger told CNBC. “I think this report, and frankly, where we’ve been over the last year, supports the president’s proposal to have a balanced approach . . .”
No. This jobs report doesn’t show a healing economy and it sure as heck doesn’t give any credence to Obama’s plans. What is shows is a failed leader who’s economic ideas are just liberal groupthink that lead to bad outcomes when applied to the real world. We need a dramatic change in direction, not the same tried-and-failed course being pushed by the Administration.