June Jobs Report Released, and There’s That Word Again

By Doug Powers  •  July 8, 2011 09:28 AM

**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”:

null

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

Twitter @ThePowersThatBe

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  1. #201
    On July 8th, 2011 at 5:52 pm, T-Bone said:

    On July 8th, 2011 at 3:36 pm, NJ-Aviator said:

    kentroyals5 said:

    Blockade for decades? You mean all those Republicans couldn’t do a thing, even when in power?

    They could have, but they didn’t. And they deserve just as much blame, and perhaps more ire, for not fixing it.

    Of course, they did have that little distraction of a war in Afghanistan. Not to mention that Algore did not allow GW Bush a good transition into office because he wanted selective recounts. That handicap to the incoming administration had a huge negative impact on Americans. So much so that GW Bush made extra effort to NOT do the same thing to Obama. In fact he paved the way for Obama by supporting the stimulus that he knew Obama wanted to do.

    So Bush was kneecapped coming into office and about the time he got that delay under control he had 9/11, which for those of us who will NEVER forget, was a major calamity. Not quite like the argula shipment to the White House kitchen being late but it certainly changed any focus GW Bush had.

  2. #202
    On July 8th, 2011 at 6:02 pm, T-Bone said:

    On July 8th, 2011 at 5:39 pm, stillontheroad said:
    T-Bone said:
    Rest assured, using his laser like focus and with sleeves rolled up will continue to dig his way out of the hole he has made.

    He will not rest until every American has a home, a job, and a illegal alien working for him.

    Goodnight and God Bless. ZZZZzzzzzzz.

  3. #203
    On July 8th, 2011 at 6:05 pm, Blackstone said:

    On July 8th, 2011 at 2:16 pm, kentroyals5 said:

    On July 8th, 2011 at 2:12 pm, stillontheroad said:
    kentroyals5 said:
    I do not know where you get your stats there Kent – but this graph does not lie.
    http://portalseven.com/employment/unemployment_rate.jsp

    What stats are you referring to? The link I provided earlier was from that liberal hack site National Review Online.

    What’s that got to do with anything? The stats he provided didn’t contradict NRO (which was simply responding to another clueless comment by Wasserman-Schultz). They just gave more detail. It shows that 9/11 caused a small spike in the unemployment rate. That then dropped steadily, which would tend to speak well in favor of the tax cuts.

    The subsequent rise after that can be attributed to the boneheaded housing policies that the federal government (yes, both parties, unfortunately, but the Dems moreso) pushed that encouraged irresponsible borrowing, fueled by the easy-money practices of the Federal Reserve.

    See? Now looking at it in more detail like that tells you a hell of a lot more than just looking at the numbers at the beginning of the Bush years and at the end.

  4. #204
    On July 8th, 2011 at 6:09 pm, letget said:

    I have just got to ask, WHAT is with the gray hair on bho? Is the poor baby under so much stress(it can not be from not getting enough vacations, golfing, or jetting off on AF1 getting reelection funds) dealing with our nation or is it only his hairdresser will know for sure? I have a feeling that not one single thing that is happening to our Republic with jobs or whatever is making bho’s hair gray.
    L

  5. #205
    On July 8th, 2011 at 6:11 pm, T-Bone said:

    On July 8th, 2011 at 1:31 pm, kentroyals5 said:

    Should we cut taxes as a means to solve the economic problem? This shows under Bush that with his low-low taxes did not help the private sector, as many argue.

    You are saying that tax cuts do not spur the economy so by inference, you are saying that tax increases will spur the economy.

    Even your beloved idol Obama disagrees with you on that one. He trumpets in almost every speech the tax cuts that he signed this year to help the economy.

    Most economists agree that cutting taxes stimulates the economy so I’m not sure how much of an argument you have here.

  6. #206
    On July 8th, 2011 at 6:41 pm, frontierguy said:

    I’m not sure who these people are that seem floored unexpectedly when they get the bad news about the economy. I fully expect the numbers they get, until HCR is gone, no one should find this as unexpected.

  7. #207
    On July 8th, 2011 at 9:11 pm, NJ-Aviator said:

    letget said:

    I have just got to ask, WHAT is with the gray hair on bho? Is the poor baby under so much stress(it can not be from not getting enough vacations, golfing, or jetting off on AF1 getting reelection funds) dealing with our nation or is it only his hairdresser will know for sure? I have a feeling that not one single thing that is happening to our Republic with jobs or whatever is making bho’s hair gray.

    EVERYTHING in the Obama administration is staged. His people probably think it makes him look more presidential, or that people may think he’s working so hard he’s going gray.

    The joke is he rarely works. AS president that is.

  8. #208
    On July 8th, 2011 at 9:13 pm, NJ-Aviator said:

    jrgdds said:

    I appreciate the compliments, but that wasn’t the reason for my post.

    Roger that. The thought never occurred to me that you’d post to get a compliment.

  9. #209
    On July 8th, 2011 at 9:18 pm, kentroyals5 said:

    Well, this is fun. In March when job numbers were good, the Republicans were taking credit. Here is a Link!

    “Yah, we stopped the democrats. You’re welcome, America,” said the Republicans a few months ago.

    Today, with the bad job numbers they say, “Democratic policies have failed. This is all on Obama.”

    Well, what is is? Hypocrites.

  10. #210
    On July 8th, 2011 at 9:38 pm, frontierguy said:

    Talk about hyprocrite. Liberals were a twitter over the McDonalds jobs last month, praising the recovery brought to us by Obama. Same liberals who said, oh goodie, conservatives added burger flipping jobs during Reagan.

    Huffpuff, has a report about Bachman’s preacher and what a bad guy he is. REALLY???? Take your hypocrite then look right into the mirror kent.

  11. #211
    On July 8th, 2011 at 9:44 pm, kentroyals5 said:

    On July 8th, 2011 at 9:38 pm, frontierguy said:

    Talk about hyprocrite. Liberals were a twitter over the McDonalds jobs last month, praising the recovery brought to us by Obama. Same liberals who said, oh goodie, conservatives added burger flipping jobs during Reagan.

    Huffpuff, has a report about Bachman’s preacher and what a bad guy he is. REALLY???? Take your hypocrite then look right into the mirror kent.

    You can claim all you want about the hypocrisy of some on the left. It’s not me talking about McDonalds or Bachmann’s preacher. This entire thread is about Obama’s economic failures. It’s all his fault, and only his fault.

    However, when job numbers were good a few months back it was because of Republican efforts. Can’t have it both ways.

  12. #212
    On July 8th, 2011 at 10:15 pm, jrgdds said:

    On July 8th, 2011 at 9:44 pm, kentroyals5 said:

    …However, when job numbers were good a few months back it was because of Republican efforts. Can’t have it both ways.

    I agree. Whether there is a Republican or a Democrat in office, none has ever created a non-government non-government subsidized job.

  13. #213
    On July 8th, 2011 at 10:23 pm, jrgdds said:

    Forgot to mention, government regulation and taxation have stifled the creation of jobs.

  14. #214
    On July 8th, 2011 at 10:44 pm, frontierguy said:

    No one can claim credit for anything but killing job creation. That would be the democrats. HCR, threats of taxing and more government regulation, making construction pay ridiculous costs in order to “green” buildings, ad naseum talk about the rich and how they are not paying their fair share (the ones who give out jobs are not going to hire if you keep threatening to take away the money that will go to hire people)

  15. #215
    On July 8th, 2011 at 10:45 pm, Blackstone said:

    On July 8th, 2011 at 9:18 pm, kentroyals5 said:

    Well, this is fun. In March when job numbers were good, the Republicans were taking credit. Here is a Link!

    Actually, one of the 3 Congressen quoted was saying simply that Republican policies would be good for the job market. He was right (now if only the Dems would get out of the way and let them be implemented).

    Not that the other two were entirely unjustified in their assessment. Preventing a tax hike on the productive definitely was good for business. Keeping Obama in charge isn’t.

    This entire thread is about Obama’s economic failures. It’s all his fault, and only his fault.

    Who’s saying that? Have you been paying attention to this site since 2008? Bush got plenty of scorn heaped on him for his big-government ways. The problem is government constantly getting in the way, regardless of which party is doing it.

    Stop taxing so much, stop spending so much, and ease up on the hyper-regulation. It’s really not that complicated.

  16. #216
    On July 8th, 2011 at 11:26 pm, BlameAmericaLast said:

    Taxation, regulation, litigation. That’s what keeps the private sector from creating jobs.

  17. #217
    On July 8th, 2011 at 11:37 pm, jrgdds said:

    It’s not as bad as I thought. It’s worse. A friend just e-mailed this:

    “The Numbers, The Are Awful.”

    9.2% — unemployment rate for June.

    0.1% — increase since May.

    16.2% — underemployment rate for June.

    0.4% — increase since May.

    8% — conventional wisdom for the
    maximum allowable unemployment rate to win reelection.

    15 — remaining BLS reporting months before Election Day.

    255,000 — net jobs that must be created each and every month to reach 8%.

    18,000 — net jobs created last month.

    44,000 — downward revision to April and May job creation.

    3,825,000 — total net jobs needed before Election Day.

    2,100,000 — jobs created in the last fifteen months.

    11.2% — unemployment rate if the labor participation rate was as high as it was in January, 2009.

    290,000 — best monthly net jobs gain during Obama administration.

    231,000 — real best gain, minus temporary Census hiring.

    14 — months since best monthly gain.

    1% — decrease in DJIA in the opening minute of trading, day that jobs figures released.

    $1,200,000,000,000 — cost of ARRA “stimulus,” with interest.

    1,900,000 — net jobs lost since ARRA was signed.

    2 — quantitative easing programs since 2008.

    ~$2,000,000,000,000 — total of first QE program during Great Recession.

    $600,000,000,000 — total of second QE program, just ended.

    40% — increase in federal debt since January, 2009.

    30% — increase in annual federal spending since January, 2009.

    20% — decrease in federal revenues since January, 2009.

    12% — decline in value of US dollar since January, 2009.

    37% — increase in number of Americans on food stamps since January, 2009.

    62% — increase in Misery index since January, 2009.

    800 — days since the Senate passed a budget.

    1.9% — last quarterly GDP increase.

    2.5% — consensus projection for last quarterly GPD increase.

    2.7% — official White House projection.

    3.0% or better — GDP growth needed to dent unemployment.

    3.6% — official White House GDP growth projection for 2012.

    2.7% — IMF GDP growth projection for 2012.

    30% — federal debt held by public as percentage of GDP, 2005.

    60% — federal debt held by public as percentage of GDP, 2010.

    180% — federal debt held by public as percentage of GDP, CBO estimate, 2035.

    0% — odds of current path being sustainable.

  18. #218
    On July 8th, 2011 at 11:55 pm, Straight_Talk_Luigi said:

    kentroyals5

    I’m happy you can look back to Reagan’s time. But I’ll take the most recent data in a global economy over your data from 30 years ago.

    Why? Reagen’s policies worked. Don’t you want policies that work?

  19. #219
    On July 9th, 2011 at 12:01 am, Straight_Talk_Luigi said:

    kentroyals5

    Well, this is fun. In March when job numbers were good, the Republicans were taking credit. Here is a Link!

    “Yah, we stopped the democrats. You’re welcome, America,” said the Republicans a few months ago.

    Today, with the bad job numbers they say, “Democratic policies have failed. This is all on Obama.”

    Well, what is is? Hypocrites.

    Yeah, cause the democrats have always owned up to responsibility and never blamed anyone…cough…cough…Bush..cough

    Of course the republicans should take credit for job growth, so long as their policies are conservative.

  20. #220
    On July 9th, 2011 at 12:47 am, Roland said:

    On July 8th, 2011 at 11:26 pm, BlameAmericaLast said:

    Taxation, regulation, litigation. That’s what keeps the private sector from creating jobs.

    That can’t be. Taxation is necessary to civilization, and regulations keep predatory capitalists from taking advantage of us, and litigation is the American Way.

    It’s the mean spirited capitalists causing all the problems. They insist on making unconscionable ‘profits,’ or they won’t hire good folks who want to work.

    We should pass a law making employers who are exploiting poor people by making them work for peanuts hire more people. If they won’t, they get thrown in jail.

    If that doesn’t do the trick, we can browbeat and threaten them some more!

    Eventually everyone will be working again, or there won’t be any more of those awful employers exploiting poor people. We win either way.

    The ‘progessives’ really are that insane. I try to explain to them that the more they browbeat employers, the more profit the employers have to make to adequately compensate them for the risk of doing business in a climate unfriendly to business, and I have yet to find even one of them who actually grasps the concept.

    And I’m talking about highly ‘educated’ people with IQ’s +130 …. which just goes to show IQ tests measure something, but it sure as Hell isn’t real intelligence.

  21. #221
    On July 9th, 2011 at 12:53 am, Roland said:

    I.Q. Test = Indoctrinable Quotient Test.

  22. #222
    On July 9th, 2011 at 10:33 am, thejim said:

    Obambi is NOT interested in job creation, higher employment in this country, low energy costs, a strong US military, and an effective US presence in the world. Quiet the opposite, he came into office with the express purpose of taking this country down a notch or two. He sat through 20 years of Rev Wright’s sermons on the evils of America and what must be done to right the injustices done by this nation. He’s doing it, none of this is unintended. So, don’t bother to defend what he’s doing and done, don’t blame Bush for the results of Obamanation’s intentional destruction of this country.

  23. #223
    On July 9th, 2011 at 10:41 am, happyscrapper said:

    The ONE time Obama told the truth and I wish it wasn’t true…

    “We will fundamentally transform the United States of America”.

    He said it, he meant it, and he’s doing it.

  24. #224
    On July 9th, 2011 at 11:13 am, letget said:

    On July 9th, 2011 at 10:41 am, happyscrapper said:

    If I recall correctly, this was just a few days before he got elected. People heard this and still voted for him! bho told what he as going to do and that is one of the major reasons I didn’t vote for him and he is a d!
    L

  25. #225
    On July 11th, 2011 at 5:22 am, buzdburd said:

    kent… said: However, when job numbers were good a few months back it was because of Republican efforts. Can’t have it both ways.

    LMAO
    Job numbers haven’t been good since GW got reelected in 2004.
    Are you f’ing kidding me!
    And the press ROASTED GW for 5% unemployment.
    We (officially) are at 9.2%.
    Trust me, we are way closer to 20%.

    Who is fooling who?

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