Last Month’s Unemployment Picture Is Grim

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economic roller coaster

Suffering through the slowest economic growth since WWII makes it feel like a recession and we may soon be in one.

President Obama’s unemployment rate is higher than when he came into office despite a nearly-trillion dollar stimulus, bailouts, and his trillion dollar deficit spending each year. Latest polls show that 60% of Americans love what he is doing [a little self-destructive perhaps?]

Unemployment rose to 7.9% last month and the only reason it didn’t go higher is because more people dropped out of the work force in the last three months.

Youth unemployment is at 24%. That is tragic! Minority youth unemployment is far worse.

Only 157,000 jobs were created, which is not enough to keep up with the increase in population.

The market is okay only because interest rates are artificially low.

We have all heard by now that the economic growth went down last quarter from 3.1% to -.1%. Another quarter like this and we are in recession.

There is nothing coming out of DC that will change this. Obama could demand another stimulus which would put us in more debt but only have the same temporary effect as all the other stimulus and spending packages. Government doesn’t grow jobs, business does.

Banks are not lending to businesses or potential home buyers no matter what the media says. The housing market for used homes is up but it’s up from historic lows, the bottom so-to-speak. New housing is crashing.

Let’s not forget that President Obama dumped his jobs council this week. That is the jobs council he ignored for two years and which was comprised of his hand-selected professionals, who made some excellent proposals for stimulating job growth. He ignored them like he ignored Simpson-Bowles.

More on this later.

Table A-15. Alternative measures of labor underutilization

HOUSEHOLD DATA

Table A-15. Alternative measures of labor underutilization

[Percent]

Measure

Not seasonally adjusted

Seasonally adjusted

Jan.

2012

Dec.

2012

Jan.

2013

Jan.

2012

Sept.

2012

Oct.

2012

Nov.

2012

Dec.

2012

Jan.

2013

U-1 Persons unemployed 15 weeks or longer, as a percent of the civilian labor force

4.9

4.2

4.3

4.8

4.3

4.4

4.3

4.3

4.2

U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force

5.4

4.3

4.9

4.7

4.2

4.2

4.1

4.1

4.3

U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate)

8.8

7.6

8.5

8.3

7.8

7.9

7.8

7.8

7.9

U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers

9.4

8.3

9.0

8.9

8.3

8.4

8.3

8.5

8.4

U-5 Total unemployed, plus discouraged workers, plus all other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force

10.5

9.2

9.9

9.9

9.3

9.3

9.2

9.4

9.3

U-6 Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force

16.2

14.4

15.4

15.1

14.7

14.5

14.4

14.4

14.4

NOTE: Persons marginally attached to the labor force are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the past 12 months. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not currently looking for work. Persons employed part time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule. Updated population controls are introduced annually with the release of January data.

 

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