The U.S. Labor Department shared discouraging news this morning.
In the month of April only 115,000 jobs were added to our economy. Economists had projected an increase of 160,000-170,000 jobs. This is a worrisome downward development.
“The labor market data confirms that the economy gained little momentum over the past six to nine months,” said Steven Ricchiuto, chief economist at Mizuho USA.
At the same time, April unemployment dropped from 8.2% to 8.1%.
More people have thrown in the towel and dropped out of the labor force. They gave up.
Statisticians don’t include the ‘giver-uppers’ number in their unemployment data. Get this… 342,000 Americans stopped looking for work last month. The labor participation rate is the lowest its been since 1981. That’s a new 30 year low of 64.3%.
We’ve got a new American demographic – job-search drop outs:
● Mitt Romney was a guest on FOX & Friends this morning. Along with the foreign policy topic of Chinese dissident Chen Guangcheng and the Richard Grenell resignation, host Gretchen Carlson asked Romney about the latest jobs report:
“We should be seeing numbers in the 500,000 jobs created per month. This is way, way, way off from what should happen in a normal recovery.
It’s a terrible and very disappointing report this morning.
The President, in his first year in office, said that he would hold unemployment below 8% and we’ve had 38 straight months unemployment above 8%. This is the longest period of high unemployment that we’ve seen since we started collecting these records back in 1948. It’s a terrible record and it shows that the President’s policies have simply not worked. It’s taken far too long for our economy to recover.”- Mitt Romney
Additional jobs report data:
● Long-term unemployment continues to be a problem. The average unemployed American has been without work for 39.1 weeks, or about nine months. Over 40 percent of the unemployed have been out of work for more than six months.
● There are 7.9 million people working part-time involuntarily.
John Silva, chief economist at Wells Fargo added his thought on our shrinking labor force dilemma: “If there are less people working, then your potential for what the economy can produce is reduced.”
Look at the 86 million invisible unemployed:
Fifty percent of kids coming out of college can’t find jobs or work equal to their skills. Home prices, factory orders, retail sales, and construction orders are down.
Veteran White House reporter Keith Koffler wrote this today:
But the trend is clearly downward. This is a huge setback for the president, and if things don’t improve soon, a very bad omen for his reelection prospects. They’ll spin the 8.1 percent number at the White House, but they know they have a problem.
At this point in a recovery, the economy should be pumping out jobs. Something is very wrong, and the president … has no idea what to do about it.
…[I]f April is indicative of the new normal, and winter was a blip, we won’t erase the gap until the 2030s. Spin today’s numbers how you’d like, but that’s a future nobody should hope for. – Derek Thomson, senior editor, The Atlantic
UPDATE – Check out Team Obama’s spin: President Obama’s Low Bar For “Good News”
► Jayde Wyatt