**Written by Doug Powers
This morning the Department of Labor released a dismal June jobs report, and guess what word the story contains:
U.S. employers added 18,000 workers in June, less than forecast and the fewest in nine months, while the unemployment rate unexpectedly climbed, indicating a struggling labor market.
The increase in payrolls followed a 25,000 gain that was less than half the rise initially estimated, Labor Department data showed today in Washington. The median estimate in a Bloomberg News survey called for a June gain of 105,000. The unemployment rate rose to 9.2 percent, the highest level this year. Hiring by companies, which excludes government agencies, was the weakest since May 2010.
It’s true what they say: Expect the unexpected!
The report is even more grim when this is taken into consideration:
The economy needs to create between 125,000 and 150,000 new jobs a month just to absorb new labor force entrants.
The White House was hoping for at least another McDonalds stimulus, which didn’t happen in June like it did in McMay.
With debt ceiling “negotiations” expected to go all weekend, if anything should make Republicans unwilling to compromise on “no tax/fee increases,” freezing (or better yet lowering) the debt ceiling and taking a machete to unsustainable spending, this report should. But will it?
Bill Kristol predicted that Republicans are going to cave “in a pretty big way.” Given the continued outlook, that might be political suicide, not to mention economic homicide.
By the way, a White House spin we might hear is this: “Of course the jobs report was bad — 39,000 of those jobs lost were public sector — so you see what happens when Tea Partying Republicans get their way!”
Update: President Obama will speak about the latest jobs report at 10:35 a.m. EST. Take a Dramamine if you watch because the spin will be dizzying.
Update II: Oh, here’s the problem — “headwinds”:
I’m satisfied. You?
Soon Goolsbee will return to a place where if there are “headwinds” you can just erase them from the equation on the chalkboard and make it all work.
Update III: Nobel Economic Laureate Paul Krugman says this lousy jobs report calls for immediate and aggressive “expansionary monetary and fiscal policy.” Sure, because they haven’t tried that yet.
**Written by Doug Powers
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