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Obamanomics Continues to Damage the Economy
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| Contributor | Scott³ |
| Last Edited | Scott³ Jul 08, 2011 06:29pm |
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| Category | Opinion |
| Author | Ross Kaminsky |
| News Date | Saturday, July 9, 2011 12:00:00 AM UTC0:0 |
| Description | "This morning, the Labor Department released the worst employment report since September of last year, with the economy creating only 18,000 jobs in June versus a Marketwatch consensus estimate of 125,000 jobs. (Yahoo Finance and Bloomberg had slightly lower estimates, but the report was a disaster by any measure.)
Private sector job growth also came in far below expectations at 57,000 net new jobs in June.
As if that weren't bad enough, both April and May employment numbers were revised lower, down a combined 44,000 jobs.
The unemployment rate moved up to 9.2 percent. The broader "U-6" measure of unemployment and underemployment spiked up to 16.2 percent, the highest level this year.
The rest of the report was bad as well: Hourly earnings were unchanged, with predictions of up 0.1-0.2 percent. The average workweek fell to 34.3 hours, below the estimate of 34.4 hours.
Fed Funds futures rose dramatically in the "back months" suggesting that the market is substantially lowering the probability of an interest rate increase by the Federal Reserve anytime this year.
If one can see a bright side to all this, it's that government at all levels shed a net 39,000 jobs in the month. I realize it's no fun for those government employees who thought of themselves just as men and women doing a job. And while many government workers perform important and legitimate functions, government is notorious for lack of productivity. At the end of the day these people are paid by taking money from the rest of us. So just as the nation won't be healthy until Washington, D.C. is no longer the strongest real estate market in the country, we also won't be healthy until the total number and cost of government jobs falls to, and remains at, a substantially lower level." |
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