Friday, February 1, 2013
AP: Video: Economy Adds 157K Jobs in January But Jobless Rate Ticks Higher: Why Job Growth Isn't Better
When I heard that economic growth in the fourth quarter of 2012 actually contracted by .01%. I was worried that might effect the job numbers for January and that we might get a weak jobs report. Or even a negative jobs report plus with the holiday season in 2012 being weaker in 2012 then. In 2011, the fiscal cliff and debt ceiling fiascos, that these were signs that we were losing ground. But actually we had a pretty steady jobs report in January and off to a good start and consistent with. What we were doing in the fourth quarter of 2012 as far as job growth and even though unemployment ticked up by .01%. Thats because more people are looking for work rather then giving up looking and perhaps working seasonable jobs because of the. Holiday season and of course are out of work now as employers are going back to their normal size workforces. But at this point unless the President and Congress come up with some type of long term economic growth package. That involves long term infrastructure investment, energy policy and encouraging consumers to spend and employers to invest and hire in America. The best thing Washington can do right now for the economy is to get out of the way.
The reason why employers aren't hiring more right now and that the economy didn't grow at all in the fourth quarter of 2012. Is that because employers are waiting to see what comes from Washington so they can adjust to it. And Washington being stuck in the same debates they've been in for two years now as it relates to the debt and deficits. And they keep passing these extenders and extensions instead of reaching agreements on long term deals. That solves these issues in a responsible way and puts these debates aside so we can move onto other issues. Like comprehensive immigration reform which would be a boost for the economy. Bringing more skilled workers into the country and bringing the 10-15M illegal immigrants out of the closet. For employers to hire without worrying about getting arrested for it and also so these workers. Can make real wages and not be abused which would also benefit the economy.
The best thing that Washington can to right now is come up with a long term debt and deficit reduction agreement. Put the debt ceiling issue behind them for two years and allow for the markets to take off with some certainty. And if they want to do anything else besides that, pass an economic plan that leads to real economic and job growth. And deal with immigration reform in a comprehensive way.