The jobs report for August is a disappointment with only 142,000 jobs added, well below the forecasted 225,000. Many in the media have called this report a blip, that will improve with future revision. The consensus being that employment will continue to grow in low to mid 200,000 range. This has become the new normal were slow improvement to the job market is acceptable. We are nearly seven years out from the beginning of the Great Recession and almost all employment indicators have not returned to pre-recession levels. 142,000 jobs added in a month should not be treated as “just a blip.” It is a result of poor public policy in response to the greatest economic downturn since the Great Depression.
James Pethokoukis, from AEI, sees the problem with these numbers asking “Where are the jobs? Where is the wage growth?” He states that,
“There are just 1.2 million more private jobs today than January 2008 despite 15.6 million more non-jailed, non-military adults. While the unemployment rate has dropped by 1.1 percentage points over the past year, the employment rate is up just 0.2 points.”
This should be unacceptable for all American. With the addition of even a fraction of the 14.4 million working aged adults the US economy would be much better improving the economic well-being of a large majority of the country. Though there has been improvement in the job market this past year, more must be done. Unemployment is dropping because more people are leaving the job market rather than finding employment. Until this trend reverses we will all be participating in a broken economy with less economic opportunities. It is long overdue for our leaders to Fix the Jobs.