Friday, May 4, 2012
Unemployment Dips to 8.1 Percent, 115k New Jobs: Good and Bad News in the Jobs Report
In February the United States added roughly 250K jobs with unemployment holding steady. The last two months we've created a total of 265K jobs. Just a little more then what we created in February, so Job Growth is definitely down. But Economic Growth is holding steady at a mediocre 2.2% or so. We are not headed back to recession, at least not yet. But we aren't gaining any ground yet either. For the Unemployment Rate to seriously drop and finally get under 8%, a place we haven't been in over three years. We need Economic Growth North of 3%, where we are creating 250-300K jobs per month. Which is what we were doing back in 2006 and parts of 2007. For that to happen, there needs to be enough demand to make that happen. People have to be comfortable enough to spend money and we need enough work to do. Where employers feel the need to hire more workers. The good news is that we have enough work in the country. To make that happen, our Manufacturing Industry continues to grow. But we also have enough work to put our Construction Workers back to work as well. But we just aren't doing that work right now.
Not to try to sound partisan but facts are always good to have. Whether they are good or bad news, as of right now. President Obama has a net job loss of roughly 440K jobs. If just current Job Growth holds, President Obama will have a net job gain by September. With still four months left in his first term, unlike President Bush who had a net job loss. Not just for his entire eight year Presidency but his first four years as well. And President Bush had a much better economy his first four years, especially in 2004. But things started to pick up in late 2003, these are just fact not Partisan Attacks. So for Mitt Romney to look at the April Jobs Report and think this is good news. For him that will lead to him being elected President. President Obama is on pace to create more jobs in his first term then President Bush. As far as a net gain in jobs and President Bush obviously got reelected.
There's both good and bad news from the April Jobs Report. Both economically and politically for President Obama, that he can use to try to push Congress. Especially the Republican House and for his sake and for the economy. He should be pushing them for more Infrastructure Investment, to put our Construction Workers back to work. As well as Tax Relief for Small Business and Manufacturing.