Last Friday’s job report revealed 175,000 jobs were added to payrolls last month. This, Washington was quick to tell us, was more than expert economists predicted. Well in that case it must be a recovery. For the sake of our nation, let’s hope this isn’t the best we can do.
The awful truth is that May’s job report was disheartening at best. Adding 175,000 jobs does little when the employment to population ratio is factored into the analysis. The ratio has not moved since this time last year, which sits at 58.6 percent. Explained differently, the nation’s employment numbers grew by 1 percent (or 1.6 million) over the past year. However, when adding the fact that the working age population also grew during that time at about 1 percent (or 2.4 million), the ratio employment to population stayed exactly the same.
This is how, in spite of 175,000 jobs being added to the economy, our nation’s unemployment rate can increase, which it did from 7.5 to 7.6 percent.
The prolonged stagnation is hurting work force participation. The participation rate has been declining steadily from lack of jobs being created. Meanwhile, the government increases spending that far exceeds revenue. We tried a stimulus bill that added nearly $1 trillion to our debt. Instead of reducing regulations and taxes on businesses, the government has increased both through programs like Obamacare
No, this is not recovery; this a staggering country barely staying afloat.