In his speech at the Brookings Institution yesterday, Vice-President Joseph Biden claimed credit for saving between five hundred thousand to one million jobs. There is no way to measure the number of jobs saved by the stimulus bill. A better way to judge these figures is by the Administration’s own predictions of what the stimulus bill would to do to job growth and the unemployment rate. This chart shows the Administration’s projections for unemployment if Congress passed the stimulus, and the actual unemployment rate since then.
The unemployment rate is already one-fifth higher than the Administration predicted. It is now expected that the peak of unemployment rate will be one-fourth higher than their predictions. Even worse, the promised job creation that was expected to lower the unemployment rate in the upcoming months has not materialized.
According to Bureau of Labor Statistics data, jobs continued to disappear in August with the unemployment rate increasing to 9.7 percent, the highest level since the summer of 1983. The unemployment rate for men was 10.1 percent, far exceeding the 7.6 percent unemployment rate for women. While 216,000 people lost jobs, this was the least amount of lost jobs of the year, an indication that the rate of job losses has greatly slowed.
Job losses continued to be broad with manufacturing (-63,000), construction (-65,000), and the service sector (-80,000) all cutting employment. While automobile dealers increased employment as a response to cash for clunkers (5,000), the automotive manufacturing industry continued to shed jobs (-14,800). Employment in the financial industry (-28,000) also continued to decrease, led by the insurance market (-12,800) and real estate (-8,000). Health care and educational services (52,000) again were the bright spots in the labor market.
Job losses are now predicted to continue for the rest of the year with the unemployment rate topping 10 percent.
The further deterioration of the labor market flatly contradicts the promises of the Obama Administration that the stimulus bill would halt unemployment and lead to a labor market recovery by the third quarter.
Unemployment at 26 year high
So much for the stimulus package — unemployment rose to 9.7% this month after shedding 216,000 jobs in August. How long will the administration be able to concoct ridiculous excuses before the media starts criticizing them on the economy and the stimulus bill? This article still stretches for a positive by listing a couple powerful stats like “the manufacturing sector grew in August for the first time in 19 months” and then with this quote ” Some economists credit the Obama administration’s $787 billion economic stimulus package of tax cuts and spending increases, along with the Cash for Clunkers program, with contributing to a recovery.” Some economists? Who, Larry Summers? Joe Biden also remains in denial: “The recovery act has played a significant role in changing the trajectory of our economy, and changing the conversation in this country,” Biden said. “Instead of talking about the beginning of a depression, we are talking about the end of a recession.” STORY
In the same month the United States shed 216,000 nonfarm jobs, our neighbor to the north added 27,100.
Canada’s unemployment rate is also a full percentage point lower than ours.
As American media focus on the just-released August employment data, will they point out this gain in Canada and how much better our neighbor’s labor markets are doing than ours?
Consider that as the Associated Press reported Canada’s numbers moments ago, there was absolutely no mention of how they compared to what was just released by our Labor Department (h/t John Bambenek):
Wouldn’t this have been a great spot to point out the fact that the U.S. lost 216,000 jobs in August sending our unemployment rate to 9.7 percent?
Since the recession began in December 2007, employers have shed about 7 million nonfarm jobs sending the unemployment rate to 9.7 percent, a 26-year high.
By contrast, the healthcare industry — which according to Democrats and their media minions is in a state of crisis desperately needing reform — has actually added 544,000 workers.
If we had an honest media, given the current debate over healthcare and the pending legislation in Congress, the following paragraph from this morning’s announcement by the Labor Department would be an important component in every report about the August unemployment numbers:
This is how the increase in healthcare jobs looks in graphic form:
Meanwhile, this is a picture of the total labor market:
In the end, the healthcare industry is one of only a few in our nation that have added jobs since the recession began.
You would think that an industry that has continued to add to its payrolls EVERY MONTH during what many have declared the worst economic period since the Great Depression would be heralded by media rather than chastised and considered in a state of crisis.
Why isn’t it?