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May 7, 2010

Unemployment Rises (Stimulus Still A Bust)

Topics: Political News and commentaries

Not good news on unemployment. Didn't Obama and his all-knowing White House economic advisors promise us that the "unemployment rate ... with the recovery act [spendibus bill)," wouldn't exceed 8%?

The unemployment rate rose to 9.9% last month, despite the economy adding 290,000 jobs (including 66,000 Census jobs). While most sectors experienced growth, returning job seekers overwhelmed the opportunities for new jobs:

Nonfarm payroll employment rose by 290,000 in April, the unemployment rate edged up to 9.9 percent, and the labor force increased sharply, the U.S. Bureau of Labor Statistics reported today. Job gains occurred in manufacturing, professional and business services, health care, and leisure and hospi-tality. Federal government employment also rose, reflecting continued hiring of temporary workers for Census 2010.

... In April, the number of unemployed persons was 15.3 million, and the unem-
ployment rate edged up to 9.9 percent. The rate had been 9.7 percent for the
first 3 months of this year.

... In April, the civilian labor force participation rate increased by 0.3 percent-
age point to 65.2 percent, as the size of the labor force rose by 805,000. Since
December, the participation rate has increased by 0.6 percentage point. The em-
ployment-population ratio rose to 58.8 percent over the month and has increased
by 0.6 percentage point since December.

... In April, nonfarm payroll employment rose by 290,000. Sizable employment gains oc-
curred in manufacturing, professional and business services, health care, and in
leisure and hospitality. Federal government employment increased due to the hiring
of temporary workers for Census 2010. Since December, nonfarm payroll employment
has expanded by 573,000, with 483,000 jobs added in the private sector. The vast
majority of job growth occurred during the last 2 months.

Ed Morrissey adds over at Hot Air:
The news was mostly good in most sectors. Manufacturing was up 44K, mining added 7,000 jobs, construction continued its rebound with a +14K, and leisure and hospitality added 45,000 jobs. That's a good showing and an indication that the job market has finally stabilized.

It's not all good news. There are two million more people not in the labor force now than a year ago, with about the same number of people desiring a job (5.865 million to 5.868 million in April '09). Those marginally attached to the labor force are significantly higher now (2.432 million) than a year ago (2.089 million). Both numbers, though, are improvements over March 2010 and before.

On the decline, the Obama administration was able to claim lower numbers by using the unemployment rate and avoiding the issue of discouraged workers. They'll pay for that on the incline as those workers start looking for jobs again. For the next several months, that unemployment rate may hide good news as it hid the bad news last year.

AJStrata is unimpressed with the numbers and notes that unemployment is going nowhere and the stimulus bill is still a failure (and has graphs to help make his point).

And then there's this from the Wall Street Journal -The real unemployment number is 17.1%:

... the government's broader measure of unemployment ticked up for the third month in a row, rising 0.2 percentage point to 17.1%.
Meanwhile, our Propaganda-in-Chief has gone on TV to tout the imaginary success of his worthless policies and toot his horn about how great he is and how bad Bush was.

Job Creation and the CBO
The Myth of the Multiplier

Posted by Abdul at May 7, 2010 10:06 AM

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